ORLANDO INDUSTRIAL7.2%+0.4%
MIAMI MULTIFAMILY$3,420+1.2%
TAMPA RETAIL4.8%-0.2%
US-192 CORRIDOR$340/SF+4.1%
30Y FIXED MORTGAGE6.72%-0.08%
FED PROBABILITY (PAUSE)92%+2%
ORLANDO INDUSTRIAL7.2%+0.4%
MIAMI MULTIFAMILY$3,420+1.2%
TAMPA RETAIL4.8%-0.2%
US-192 CORRIDOR$340/SF+4.1%
30Y FIXED MORTGAGE6.72%-0.08%
FED PROBABILITY (PAUSE)92%+2%
ORLANDO INDUSTRIAL7.2%+0.4%
MIAMI MULTIFAMILY$3,420+1.2%
TAMPA RETAIL4.8%-0.2%
US-192 CORRIDOR$340/SF+4.1%
30Y FIXED MORTGAGE6.72%-0.08%
FED PROBABILITY (PAUSE)92%+2%

How do insurance companies underwrite hotel loans and what does 225 bps over Treasuries actually mean?

Insurance company hotel lending operates on different criteria than CMBS conduit or bank hotel lending, and produces meaningfully better pricing for borrowers who qualify. Insurance companies (life insurance companies managing long-duration liabilities) hold hotel loans to maturity rather than securitizing them, which means they underwrite for 10-year performance rather than 90-day securitization execution. Their criteria: minimum 1.40× DSCR at the proposed loan amount on trailing NOI, LTV at or below 65%, institutional flag affiliation (Marriott, Hilton, Hyatt, IHG, not independent), primary location (I-Drive, Airport, Convention District, not secondary suburban), and borrower net worth equal to or greater than the loan amount. Borrowers who meet all criteria access pricing at approximately 225 basis points over the 10-year Treasury. At a 10-year Treasury of approximately 4.5% (Q1 2026), that is a 6.75% all-in rate, 75–125 basis points tighter than CMBS conduit pricing for equivalent hotels. On a $15M loan, 100 basis points of rate savings is $150,000/year in reduced debt service, a meaningful improvement to annual cash flow and DSCR.