Rate sheet
Hotel Loan Rate Sheet, September 2026. What the public benchmarks say, and what we have not published yet.
Published by Matthews Hotel Markets · Last updated: September 18, 2026
This is the archived September 2026 edition. It is kept exactly as published so a citation to it stays true. See the current edition.
Correction. Corrected September 18, 2026: Prime moved to 7.00% on September 17 after the Fed's September 16 decision, so the SBA 7(a) maximum is 10.00%; SOFR printed 3.85% for September 17. This edition was first published September 17, 2026 and was corrected in place on September 18, 2026; the changelog below records the earlier values.
Sources: FOMC statement, September 16, 2026 (target range 3-3/4 to 4 percent) (Board of Governors of the Federal Reserve System, source date 2026-09-16); BNY Increases Prime Lending Rate to 7.00%, effective September 17, 2026 (The Bank of New York Mellon Corporation, via PR Newswire, source date 2026-09-16); PNC Bank, N.A. Changes Prime Rate to 7.00%, effective September 17, 2026 (PNC Bank, N.A., via PR Newswire, source date 2026-09-16); Bank Prime Loan Rate (DPRIME) (Federal Reserve Bank of St. Louis (FRED), source date 2026-09-15); Federal Funds Target Range, Upper Limit (DFEDTARU) (Federal Reserve Bank of St. Louis (FRED), source date 2026-09-17); 7(a) loan program: terms, conditions, and eligibility (U.S. Small Business Administration, source date 2026-09-17); Secured Overnight Financing Rate (SOFR) (Federal Reserve Bank of New York, source date 2026-09-17).
As of September 17, 2026, the 10-year Treasury is 4.94%, the 5-year is 4.78%, SOFR is 3.85%, and Prime is 7.00%. SBA caps a variable-rate 7(a) loan over $350,000 at Prime plus 3.00%, which is 10.00% today. The 25-year SBA 504 debenture priced at 6.54% on September 10. Rows that depend on what lenders are actually quoting are marked not yet published.
What is and is not on this page. Of 49 priced cells in the table below, 9 are public benchmarks or published program rules with a source link, and 40 say “not yet published”. Nobody publishes those, and we have not yet released our own figure for them. We would rather show you the gap than fill it with a number we made up. Every index value in the table is real, sourced and dated. Methodology.
The indexes every quote is struck against
Each figure below comes straight from the institution that publishes it. The as-of date is the date of the observation, not the date we fetched it.
Prime rate
7.00%
As of September 17, 2026
Prime rate announcements by BNY and PNC, effective September 17, 2026 (FRED series DPRIME has not yet printed a post-hike value; its last observation is 6.75% on September 15, 2026)
5-year Treasury
4.78%
As of September 17, 2026
U.S. Department of the Treasury, Daily Treasury Par Yield Curve Rates
7-year Treasury
4.86%
As of September 17, 2026
U.S. Department of the Treasury, Daily Treasury Par Yield Curve Rates
10-year Treasury
4.94%
As of September 17, 2026
U.S. Department of the Treasury, Daily Treasury Par Yield Curve Rates
SBA 504 debenture, 25-year
6.54%
As of September 10, 2026
SBA 504 debenture pricing published by NADCO and republished by CDC lenders (SomerCor, CDC Small Business Finance)
September 2026 terms by lender type
| Lender type | Index | Spread | All-in coupon | Max LTV / LTC | DSCR floor | Term / amortization | Recourse | Minimum loan |
|---|---|---|---|---|---|---|---|---|
| SBA 7(a)Government-guaranteed bank loan for an owner-operator. Prime-indexed, fully amortizing. | PrimePrime rate 7.00% | Prime + 3.00% maximumSBA's maximum allowable spread on a variable-rate 7(a) loan over $350,000. It is a ceiling set by the agency, not a quote, and a good lender prices inside it. | 10.00% maximum allowablePrime 7.00%, effective September 17, 2026, as announced by BNY and PNC after the FOMC raised the target range 25 basis points on September 16, plus the 3.00% cap. The Federal Reserve's DPRIME series had not yet printed a post-hike value on September 18, 2026; its last observation is 6.75% on September 15. Corrected September 18, 2026: this cell first read 9.75%, on the 6.75% Prime. | Not yet publishedSBA publishes no LTV cap for 7(a). The working ceiling is the lender's, and only live quotes show it. | Not yet publishedSBA publishes no 7(a) coverage floor. Lender-set, and only live quotes show it. | Up to 25 years, fully amortizingSBA's published maximum maturity for real estate, plus any additional period needed to complete construction. | RecourseSBA loans carry a personal guaranty from the principals of the borrowing entity. The ownership threshold and the guaranty form are set in SBA's SOP 50 10, linked in the sources below. We link the governing document rather than paraphrase the clause, because the SOP is on its 8.1 edition effective October 1, 2026 and the threshold is the kind of detail that moves between editions. | Not yet publishedLender-set. SBA publishes a $5 million program maximum, not a minimum. |
| SBA 504Bank first lien plus a fixed-rate CDC second lien funded by a monthly debenture sale. | SBA 504 debentureSBA 504 debenture, 25-year 6.54% | Not spread-pricedThe CDC second lien is priced by the monthly debenture sale, not as a spread over an index. The bank first lien prices separately and is not published anywhere. | 6.54% on the 25-year debenturePriced September 10, 2026. Includes the CDC, SBA and central servicing agent fees, so it is the all-in effective rate on the CDC portion for the life of the loan. The 20-year debenture priced at 6.53% and the 10-year at 6.60%. This is the only fully published all-in coupon on the sheet. | 85% of project costSBA's SOP 50 10 8 lists hotels as Limited or Special Purpose Property, so 13 CFR 120.910 requires a borrower contribution of at least 15%. If the operating business is also under two years old, the contribution rises to 20% and the ceiling falls to 80%. | Not yet publishedSet by the CDC and the first-lien bank, not by regulation. Only live quotes show it. | 10, 20 or 25 year debenture, fully amortizingThe bank first lien runs on its own term, which is usually shorter. | RecourseSame guaranty requirement as 7(a). Section A of SOP 50 10 covers core requirements for both programs. | Not yet publishedCDC-set. SBA publishes a $25,000 minimum debenture and a $5 million maximum for a hotel, not a minimum total loan. |
| Bank and credit union, conventionalBalance-sheet lender, usually local or regional, usually with a deposit relationship attached. | Prime or 5-year TreasuryPrime rate 7.00% · 5-year Treasury 4.78% | Not yet publishedSpread over the index on bank and credit union, conventional quotes received this month. | Not yet publishedResulting coupon range on bank and credit union, conventional quotes received this month. | Not yet publishedHighest leverage actually quoted by bank and credit union, conventional lenders this month. | Not yet publishedCoverage test actually applied by bank and credit union, conventional lenders this month. | Not yet publishedTerm and amortization actually offered by bank and credit union, conventional lenders this month. | Not yet publishedRecourse actually required by bank and credit union, conventional lenders this month. | Not yet publishedSmallest loan bank and credit union, conventional lenders quoted this month. |
| CMBSFixed-rate, non-recourse, securitized. Priced as a spread over the matched-term Treasury. | 5- and 10-year Treasury5-year Treasury 4.78% · 10-year Treasury 4.94% | Not yet publishedSpread over the index on cmbs quotes received this month. | Not yet publishedResulting coupon range on cmbs quotes received this month. | Not yet publishedHighest leverage actually quoted by cmbs lenders this month. | Not yet publishedCoverage test actually applied by cmbs lenders this month. | Not yet publishedTerm and amortization actually offered by cmbs lenders this month. | Not yet publishedRecourse actually required by cmbs lenders this month. | Not yet publishedSmallest loan cmbs lenders quoted this month. |
| Life companyInsurance company balance sheet. Lowest coupons, lowest leverage, the most selective on asset quality. | 5-, 7- and 10-year Treasury5-year Treasury 4.78% · 7-year Treasury 4.86% · 10-year Treasury 4.94% | Not yet publishedSpread over the index on life company quotes received this month. | Not yet publishedResulting coupon range on life company quotes received this month. | Not yet publishedHighest leverage actually quoted by life company lenders this month. | Not yet publishedCoverage test actually applied by life company lenders this month. | Not yet publishedTerm and amortization actually offered by life company lenders this month. | Not yet publishedRecourse actually required by life company lenders this month. | Not yet publishedSmallest loan life company lenders quoted this month. |
| Bridge and debt fundFloating-rate, short-term, for a hotel that is not stabilized: a PIP, a repositioning, a lease-up. | SOFRSOFR 3.85% | Not yet publishedSpread over the index on bridge and debt fund quotes received this month. | Not yet publishedResulting coupon range on bridge and debt fund quotes received this month. | Not yet publishedHighest leverage actually quoted by bridge and debt fund lenders this month. | Not yet publishedCoverage test actually applied by bridge and debt fund lenders this month. | Not yet publishedTerm and amortization actually offered by bridge and debt fund lenders this month. | Not yet publishedRecourse actually required by bridge and debt fund lenders this month. | Not yet publishedSmallest loan bridge and debt fund lenders quoted this month. |
| ConstructionGround-up or substantial renovation, funded on draws, sized to cost rather than to value. | Prime or SOFRPrime rate 7.00% · SOFR 3.85% | Not yet publishedSpread over the index on construction quotes received this month. | Not yet publishedResulting coupon range on construction quotes received this month. | Not yet publishedHighest leverage actually quoted by construction lenders this month. | Not yet publishedCoverage test actually applied by construction lenders this month. | Not yet publishedTerm and amortization actually offered by construction lenders this month. | Not yet publishedRecourse actually required by construction lenders this month. | Not yet publishedSmallest loan construction lenders quoted this month. |
- SBA 7(a): Best fit for an owner-operator buying a single hotel. The $5 million cap is the binding constraint on most hotel deals.
- SBA 504: The fixed-rate second lien is the reason to look at 504 instead of 7(a): it locks up to 35% of a hotel's capital stack (40% on an ordinary property) for 25 years at a published rate.
- Bank and credit union, conventional: The most common source of hotel debt under $15 million and the structure the Matthews Hotel Debt Index measures.
- CMBS: Defeasance or yield maintenance on prepayment. The 10-year Treasury on this sheet is the index a CMBS quote is struck against.
- Life company: Rarely competitive on select-service under $10 million. Worth a call on a full-service or resort asset in a market a life company already knows.
- Bridge and debt fund: Almost always requires a purchased rate cap. The cap strike and its cost are part of the real cost of the loan and belong in any honest comparison, so this row will carry them once the team publishes.
- Construction: Sized on loan to cost with a completion guaranty. Recourse burns off at stabilization on the better structures.
Matthews Hotel Debt Index (MHDI)
September 2026 reading
Not yet published
Quotes behind it
None yet
Series start
September 2026
Definition. The indicative all-in fixed coupon, in percent, on a 10-year permanent first mortgage for a stabilized, branded select-service hotel in a top-50 U.S. market, at 65% loan to value, 1.35x debt service coverage, 25-year amortization, non-recourse, from a conventional bank or credit union lender, as quoted to Matthews Hotel Markets during the calendar month.
First publication month. The series starts here. We do not have a quote log going back before this page existed, and we are not going to reconstruct one from memory, so there is no history to show yet.
The rules the index runs on
- One structure only. If a quote does not match the definition, it does not go in the index.
- Median of the quotes received that month, not an average. One outlier quote should not move a monthly series.
- Minimum three independent quotes from three separate lenders, or the month publishes as no reading.
- No lender is named, on the page or in the underlying file. The index reports the market, not a relationship.
- No client, property, or transaction detail is published, ever.
- History is never backfilled. The series starts the month it starts, and the page says so.
- A revision is published as a revision, with the date and the reason, not edited in place.
The MHDI is the debt-side companion to the Matthews Hotel Index, which publishes quarterly cap rates, ADR and RevPAR across 14 markets from public sources. Two different datasets: MHI measures what hotels trade at, MHDI measures what the debt costs. They are not combined, because they run on different cadences and different kinds of evidence.
What moved
- The FOMC raised the target range for the federal funds rate 25 basis points to 3-3/4 to 4 percent on September 16, 2026, on a 12 to 0 vote. The effective target range upper limit moved to 4.00% on September 17.
- Prime moved from 6.75% to 7.00% effective September 17, as announced by BNY and PNC. That lifts the SBA 7(a) maximum allowable rate on a variable-rate loan over $350,000 from 9.75% to 10.00%. The Federal Reserve's DPRIME series had not yet printed a post-hike value on September 18; its last observation is 6.75% on September 15.
- The 5-year Treasury rose 29 basis points, from 4.49% on August 31 to 4.78% on September 17.
- The 10-year Treasury rose 19 basis points, from 4.75% on August 31 to 4.94% on September 17. The 5s10s curve flattened by 10 basis points over the same stretch.
- SOFR drifted from 3.68% on August 31 to 3.62% on September 16, then printed 3.85% for September 17, the first day under the new target range. That is 17 basis points above August 31, so floating-rate debt now costs more than it did at the start of the month, along with fixed-rate term debt.
- The 25-year SBA 504 debenture priced at 6.54% on September 10, which is inside the 10-year Treasury. For a qualifying owner-operator it is the cheapest fixed-rate money on this sheet.
Cite this
Published under CC BY 4.0. Reuse it anywhere, including in an AI assistant’s answer, with attribution. The archived edition URL never changes, so a citation to it stays true after the next refresh.
Matthews Hotel Markets. "Hotel Loan Rate Sheet, September 2026." https://matthewshotelmarkets.com/rates. Published 2026-09-17.Machine-readable: /rates.json and /rates.csv. Both carry the same basis label on every cell, so a pending cell cannot be read back as a number. Cross-origin requests are allowed.
Archive: September 2026.
Sources
- Daily Treasury Par Yield Curve Rates · U.S. Department of the Treasury · source date 2026-09-17 · last verified 2026-09-18
- Secured Overnight Financing Rate (SOFR) · Federal Reserve Bank of New York · source date 2026-09-17 · last verified 2026-09-18
- Bank Prime Loan Rate (DPRIME) · Federal Reserve Bank of St. Louis (FRED) · source date 2026-09-15 · last verified 2026-09-18
- BNY Increases Prime Lending Rate to 7.00%, effective September 17, 2026 · The Bank of New York Mellon Corporation, via PR Newswire · source date 2026-09-16 · last verified 2026-09-18
- PNC Bank, N.A. Changes Prime Rate to 7.00%, effective September 17, 2026 · PNC Bank, N.A., via PR Newswire · source date 2026-09-16 · last verified 2026-09-18
- Federal Funds Target Range, Upper Limit (DFEDTARU) · Federal Reserve Bank of St. Louis (FRED) · source date 2026-09-17 · last verified 2026-09-18
- FOMC statement, September 16, 2026 (target range 3-3/4 to 4 percent) · Board of Governors of the Federal Reserve System · source date 2026-09-16 · last verified 2026-09-18
- 7(a) loan program: terms, conditions, and eligibility · U.S. Small Business Administration · source date 2026-09-17 · last verified 2026-09-18
- 504 loans · U.S. Small Business Administration · source date 2026-09-17 · last verified 2026-09-17
- 13 CFR 120.910, How much must the Borrower contribute? · Code of Federal Regulations · source date 2026-09-17 · last verified 2026-09-17
- September 2026 SBA 504 debenture pricing, priced September 10, 2026 · SomerCor (Certified Development Company), republishing NADCO pricing · source date 2026-09-10 · last verified 2026-09-17
- SBA 504 rates and rate history, September 2026 funding · CDC Small Business Finance · source date 2026-09-10 · last verified 2026-09-17
- SOP 50 10, Lender and Development Company Loan Programs (edition 8.1, effective October 1, 2026) · U.S. Small Business Administration · source date 2026-10-01 · last verified 2026-09-17
Who publishes this
VP & Director, Capital Markets, Matthews Hotel Markets
Hospitality Associate, Matthews Hotel Markets
Luke Thompson runs debt placement for Matthews Hotel Markets and owns the observed figures on this sheet. Nate Solomon compiles the public benchmarks and the monthly refresh.
September 2026
A rate sheet is a starting point. A quote on your hotel is the real answer.
Related: Matthews Hotel Index · Hotel financing statistics · Glossary · Research
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