The Fed held at 3.75%, futures are pricing higher by year-end, and that $20M floating-rate loan you underwrote in 2023 is quietly eating your NOI from the inside. The owners who haven't stress-tested their debt stack against a flat-to-rising rate environment are about to learn what "recalibration" actually costs.
The Fed held at 3.50–3.75% last week, but four FOMC members dissented for the first time in over 30 years, and market odds now price a hike above 50% by early 2027. If you're carrying floating-rate hotel debt originated in 2021–2023, the assumptions baked into your pro forma are about to get tested.
The Fed held at 3.50%-3.75% but three FOMC members just dissented against the easing bias, and a new hawkish chair arrives in six weeks. If you're carrying floating-rate hotel debt originated in 2022-2024, the next move isn't a headline — it's a line item on your debt service schedule you need to model this week.
March CPI just printed at 3.3% and the Fed is now discussing hikes instead of cuts. If your hotel acquisition was underwritten assuming SOFR would be 150-200 basis points lower by now, the refinancing math isn't tight... it's broken.
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.
