Summit Hotel Properties just extended its debt runway to 2031 and shaved 20 basis points off borrowing costs on a $650 million facility. The interesting part isn't the maturity extension... it's what the spread structure tells you about how lenders are pricing select-service REIT risk right now.
Thirty percent of hotel-backed loans mature this year, and the rate relief owners underwrote in their 2023 pro formas isn't coming. The gap between what borrowers assumed and what lenders are quoting is where equity goes to die.
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.
