The Fed sat tight at 3.50-3.75% yesterday and every hotel exec in Atlanta is calling it "higher for longer." But the real story isn't what the Fed did. It's what owners have been avoiding for two years.
The Fed held at 3.50%-3.75% and some officials floated rate hikes. For hotel owners with floating-rate debt or looming maturities, the math on refinancing just changed by tens of millions of dollars.
The federal funds rate stays at 3.50%-3.75% through March, with cuts now pushed to late 2026 at the earliest. For hotel owners sitting on maturing CMBS debt, the math just got brutal.
