Real estate investment banking firm RobertDouglas’ 11th Annual Lender Survey, just released, found borrowing conditions are expected to improve due to a growing but cautious optimism. Lenders in the hotel sector remain engaged and, while wary of ongoing economic uncertainties such as inflationary pressures and geopolitical tensions, expect to build on last year’s momentum and increase their hospitality exposure in 2025.
This year, there is a notable shift in focus, with the sponsor’s experience and track record emerging as the primary “gating” factor for loan requests compared to the inherent cash flow metrics, which was the top concern in recent years. Equally significant, a majority of respondents expect to provide construction financing in 2025, demonstrating a notable shift from 2024’s survey results.
Overall, the potential for a U.S. economic slowdown is seen as the top threat to hotel loan portfolios, with nearly two-thirds of respondents expressing concern; escalating operating costs, excluding employee wages, healthcare and benefits, ranked second.
Perhaps, most importantly, a healthy 35% of respondents reported confidence in future hotel performance and the risk-reward relationship of debt positions, demonstrating that a variety of participants are willing to provide liquidity in the hotel debt market. This confidence is further displayed with fewer lenders now worried about refinancing risk, which has dropped from 56% in 2024 to 40% in 2025.
RobertDouglas conducts its annual lender survey to measure the current state of financing market conditions and evaluate key future expectations through the lens of the specialist hospitality lending community. Providing insights on the metrics most important to lenders in the underwriting, sizing and pricing of hotel loans, the study includes more than 70 financing originators, including life insurance companies, debt funds, conduit lenders and banks.
About RobertDouglas
RobertDouglas is a real estate investment banking firm with offices in New York, Los Angeles, San Francisco, Nashville and Chicago that specializes in the sale, financing and equity capitalization of hotel, resort and gaming properties throughout North America. Founded in January 2013 and currently led by its four partners, Rob Stiles, Doug Hercher, Stephen O’Connor and Evan Hurd, RobertDouglas offers access to exceptional domestic and international institutional investor and lender relationships as it combines the capital markets sophistication of top-tier investment banks with diligent hotel underwriting and proven asset management experience.
To receive a full copy of the RobertDouglas 2025 Hotel Lender Survey, email [email protected]