PERSPECTIVE
On Loan
HOTEL DEBT MARKETS MAINTAIN STRONG LIQUIDITY.
Contributed by ADRIENNE ANDREWS, MANAGING DIRECTOR, JLL HOTELS & HOSPITALITY GROUP
The hotel debt markets have demonstrated remarkable resilience through the third quarter of 2025 and into the fourth quarter, maintaining robust capital availability despite evolving operational challenges across the lodging sector. Hotel loan originations totaled $ 27 billion in the first half of 2025, reflecting a continued strong appetite from diverse capital sources. Unlike previous market disruptions, liquidity has not been constrained, though the lending landscape is characterized by heightened attention to nuanced asset performance, sponsor balance sheet strength and existing cash flow or the ability to execute on pro forma cash flow with certainty.
With $ 114 billion in hotel loans maturing through 2027 and the potential for additional Federal Reserve rate cuts through 2026, the financing environment presents both strategic opportunities and refinancing pressures that will drive significant transaction activity.
PERFORMANCE BIFURCATION SHAPES LENDING STRATEGIES Though revenue per available room( RevPAR) reached record highs in the first half of 2025, growth decelerated to just 70 basis points year-over-year as performance bifurcation intensified across hotel segments. Luxury hotels posted 24.1 % growth compared to H1 2019, while economy segments declined 1.2 % over
26 hotelsmag. com November 2025