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Rate sheet

Hotel Loan Rate Sheet, October 2026. What the public benchmarks say, and what we have not published yet.

Published by Matthews Hotel Markets · Last updated: October 1, 2026

This is the archived October 2026 edition. It is kept exactly as published so a citation to it stays true. See the current edition.

As of September 30, 2026, the 10-year Treasury is 5.29%, the 7-year is 5.19%, the 5-year is 5.09%, and SOFR is 3.90%. Prime is 7.00%, unchanged since September 17. 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 and next prices October 8. 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 29, 2026
Board of Governors of the Federal Reserve System, H.15 Selected Interest Rates, bank prime loan rate, confirmed in FRED series DPRIME

SOFR

3.90%

As of September 30, 2026
Federal Reserve Bank of New York, Secured Overnight Financing Rate

5-year Treasury

5.09%

As of September 30, 2026
U.S. Department of the Treasury, Daily Treasury Par Yield Curve Rates

7-year Treasury

5.19%

As of September 30, 2026
U.S. Department of the Treasury, Daily Treasury Par Yield Curve Rates

10-year Treasury

5.29%

As of September 30, 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)

October 2026 terms by lender type

Hotel loan terms by lender type, October 2026. Cells marked “not yet published” have no figure.
Lender typeIndexSpreadAll-in couponMax LTV / LTCDSCR floorTerm / amortizationRecourseMinimum 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. SOP 50 10 8.1, Appendix 18, page 397, sets the same four tiers as the prior edition: Prime plus 6.5% at $50,000 and under, plus 6.0% to $250,000, plus 4.5% to $350,000, and plus 3.0% above that. It is a ceiling set by the agency, not a quote, and a good lender prices inside it.
10.00% maximum allowablePrime 7.00% plus the 3.00% cap. Prime has been 7.00% since September 17, 2026 and has not moved since: the Federal Reserve's H.15 release prints 7.00% for September 23 through 29, 2026 and FRED series DPRIME prints 7.00% for September 28. The FOMC has not met since September 16, 2026 and its next scheduled meeting is October 27 and 28, so nothing has happened that would move Prime between the two editions. SOP 50 10 8.1, Appendix 18, page 397, sets the base rate for a variable-rate loan as the one in effect on the first business day of the month in which SBA assigns the loan number, so 7.00% is the base rate for applications numbered in October 2026.
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 amortizingSOP 50 10 8.1, Appendix 17, page 392: a real estate loan must not exceed 25 years, plus any additional period reasonably necessary for construction or renovation. SBA does not allow balloon payments.
RecourseSOP 50 10 8.1, Section A, Chapter 5, Paragraph A, page 93: every loan must be guaranteed by at least one individual or entity, and any owner of 20% or more, direct or indirect, must provide an unlimited full guaranty. A spouse owning less than 20% must guarantee in full when the couple's combined interest reaches 20%. The threshold is unchanged from the prior SOP edition.
Not yet publishedLender-set. SOP 50 10 8.1, Section B, Chapter 1, page 117, sets a $5 million program maximum for a Standard 7(a) loan, 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, and still the latest published pricing: the October debenture prices on October 8, 2026, after this edition. 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. It sits 125 basis points above the 10-year Treasury this month, down from 160 basis points in September, because the Treasury rose 35 basis points and the debenture has not repriced since September 10.
85% of project costSOP 50 10 8.1, Section C, Chapter 1, Paragraph E.1.c, page 244, lists hotels, motels and other lodging facilities as a Limited or Special Purpose Property, so 13 CFR 120.910 requires a borrower contribution of at least 15% and the debenture funds no more than 35% of the project. If the operating business is also under two years old the contribution rises to 20%, the debenture funds no more than 30%, and the ceiling falls to 80%. Re-read in the 8.1 edition on October 1, 2026; unchanged.
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 amortizingSOP 50 10 8.1, Section C, Chapter 1, Paragraph D.2, page 243: 10, 20 or 25 years on the remaining useful life of the property, with 25 years the maximum for real estate. The bank first lien runs on its own term, which is usually shorter, and must be at least 10 years when the 504 loan runs 20 or 25.
RecourseSame guaranty requirement as 7(a), from the same paragraph: Section A, Chapter 5, Paragraph A, page 93, covers core requirements for both programs.
Not yet publishedCDC-set. SOP 50 10 8.1, Section C, Chapter 1, Paragraph D.1, page 243, sets a $25,000 minimum debenture and a $5 million maximum gross debenture per small business concern and its affiliates. The $5.5 million figure applies only to eligible energy public policy projects and to small manufacturers in NAICS 31 to 33, and a hotel is neither.
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 5.09%
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 5.09% · 10-year Treasury 5.29%
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 5.09% · 7-year Treasury 5.19% · 10-year Treasury 5.29%
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 3.90%
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 3.90%
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, and it rose 35 basis points between the September and October editions.
  • 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)

October 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.

No reading. The index publishes only from quotes this team typed in, and none have been supplied for October. A month without three independent quotes on the exact structure in the definition publishes as no reading rather than as a thinner number, and the series is never backfilled, so this month will stay blank even after the quote log starts.

5.0%7.0%9.0%September '26October '26No readings published yet
The series starts with the first published reading. There is no history before this page existed, and none has been reconstructed.

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

  1. The 10-year Treasury rose 35 basis points, from 4.94% on September 17 to 5.29% on September 30, 2026. Over the full calendar month it rose 54 basis points, from 4.75% on August 31.
  2. The 7-year Treasury rose 33 basis points, from 4.86% to 5.19%, and the 5-year rose 31 basis points, from 4.78% to 5.09%, over the same September 17 to September 30 stretch.
  3. The 5s10s curve steepened 4 basis points since the September edition, from 16 to 20 basis points, so the cost of choosing a 10-year fixed term over a 5-year went up slightly. Measured against August 31 the curve is 6 basis points flatter.
  4. SOFR rose 5 basis points, from 3.85% for September 17 to 3.90% for September 30, 2026. Over the calendar month it rose 22 basis points from 3.68% on August 31.
  5. Prime did not move. It has been 7.00% since September 17, 2026, and the FOMC has not met since September 16; the next meeting is October 27 and 28. The SBA 7(a) maximum allowable rate on a variable-rate loan over $350,000 therefore stays at 10.00%. This edition cites the Federal Reserve's own H.15 release and FRED series DPRIME for the 7.00%, rather than the bank announcements the September edition had to use before the Fed had printed a post-decision value.
  6. The 25-year SBA 504 debenture is unchanged at 6.54%, because September 10 is still the latest pricing: the October debenture prices on October 8, 2026, a week after this edition. The gap between the debenture and the 10-year Treasury narrowed from 160 to 125 basis points, entirely because the Treasury moved.
  7. SBA's SOP 50 10 8.1 took effect October 1, 2026 and is now the governing edition. All three 504 facts this sheet depends on were re-read in it and none changed: hotels, motels and other lodging facilities are still listed as a Limited or Special Purpose Property (Section C, Chapter 1, Paragraph E.1.c, page 244), the borrower contribution is still at least 15% and 20% when the business is also new (same paragraph, applying 13 CFR 120.910), and the maximum gross debenture for a hotel is still $5 million, with $5.5 million reserved for energy projects and small manufacturers (Section C, Chapter 1, Paragraph D.1, page 243). The 7(a) rate tiers in Appendix 18, page 397, are also unchanged.
  8. No observed cell moved, because none has been published yet. The Matthews Hotel Debt Index has no October reading for the same reason: fewer than three independent quotes on the index structure.

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, October 2026." https://matthewshotelmarkets.com/rates. Published 2026-10-01.

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: October 2026, September 2026.

Sources

  1. Daily Treasury Par Yield Curve Rates · U.S. Department of the Treasury · source date 2026-09-30 · last verified 2026-10-01
  2. Secured Overnight Financing Rate (SOFR) · Federal Reserve Bank of New York · source date 2026-09-30 · last verified 2026-10-01
  3. Bank Prime Loan Rate (DPRIME) · Federal Reserve Bank of St. Louis (FRED) · source date 2026-09-28 · last verified 2026-10-01
  4. Selected Interest Rates (Daily), H.15, bank prime loan rate · Board of Governors of the Federal Reserve System · source date 2026-09-29 · last verified 2026-10-01
  5. 7(a) loan program: terms, conditions, and eligibility · U.S. Small Business Administration · source date 2026-10-01 · last verified 2026-10-01
  6. 504 loans · U.S. Small Business Administration · source date 2026-10-01 · last verified 2026-10-01
  7. 13 CFR 120.910, How much must the Borrower contribute? · Code of Federal Regulations · source date 2026-10-01 · last verified 2026-10-01
  8. September 2026 SBA 504 debenture pricing, priced September 10, 2026 · SomerCor (Certified Development Company), republishing NADCO pricing · source date 2026-09-10 · last verified 2026-10-01
  9. SBA 504 rates and rate history, September 2026 funding · CDC Small Business Finance · source date 2026-09-10 · last verified 2026-10-01
  10. SOP 50 10 8.1 with Technical Policy Updates, Lender and Development Company Loan Programs, published September 25, 2026 and effective October 1, 2026 · U.S. Small Business Administration, Office of Capital Access · source date 2026-10-01 · last verified 2026-10-01
  11. 13 CFR 120.160, What are the requirements for a guaranty? · Code of Federal Regulations · source date 2026-10-01 · last verified 2026-10-01
  12. FOMC meeting calendar, 2026 (next meeting October 27 and 28, 2026) · Board of Governors of the Federal Reserve System · source date 2026-10-01 · last verified 2026-10-01

Who publishes this

Luke Thompson

VP & Director, Capital Markets, Matthews Hotel Markets

(512) 771-1860 · luke.thompson@matthews.com

LinkedIn

Nate Solomon

Hospitality Associate, Matthews Hotel Markets

(512) 839-6999 · nate.solomon@matthews.com

LinkedIn

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.

October 2026

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