Hotel Market Update: August 2026
By Matt Gillis – Associate
Orlando has been one of the strongest hotel markets in the country this year. Occupancy was up 13.3% to 71.0%, while RevPAR jumped 23.7% to $149.38. A big part of that was the opening of Epic Universe in May 2025, which continues to drive demand, along with the easier year-over-year comparison since the park was still ramping up last year. That said, those kinds of growth numbers probably won’t continue through the rest of the year. After 2025 marked the first decline in occupancy and RevPAR since 2020, expectations for 2026 are much more modest, with RevPAR projected to grow by only about 0.6%. Orlando is still outperforming most major markets on occupancy, but room rate growth has started to level off.
New supply is coming online, Orlando added roughly 1,300 new hotel rooms during Q2, including the 400-room W Hotel near Epic Universe and the new Nobu resort. On a national level, hotel supply is expected to grow by only about 1.4% this year, which is well aligned with demand.
From a lending standpoint, CMBS lenders are generally quoting rates in the 6%–7% range with debt yields of at least 13%, while life companies are looking for closer to 15% debt yields at similar pricing. Bridge lenders and debt funds are still filling the higher-leverage space, typically around 10% interest and up to roughly 70% leverage. Strong, well-located assets with experienced sponsors are still getting competitive financing, while weaker or distressed hotels are facing a much tougher capital environment.
One of the biggest themes this year continues to be refinancing. Around $76.6 billion of CMBS loans mature in 2026, with hotels representing the largest share. Many borrowers that financed deals with floating-rate debt during 2020–2022 are now being forced back into the market at today’s rates. Banks and debt funds have become a little more active, but underwriting remains selective. Branded select-service and upper-upscale hotels with solid sponsorship are attracting the most interest, while construction financing is still fairly limited outside of the strong markets.
