Press Release|CMBS
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KBRA Releases Research – Late Checkout: Lodging Delinquencies Vary by Price Class and Chain

3 Jun 2026   |   New York

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The CMBS lodging 30+ day delinquency rate peaked at 23.2% in June 2020 before falling precipitously from pandemic-era highs to mid-single digits in 2022, where it has since remained relatively stable. The delinquency rate stood at 6.4% as of March 2026, compared to 6.5% in March 2025 and 5.3% in March 2024. Lodging fundamentals have weakened, with revenue per available room (RevPAR) declining and turning negative on a year-over-year (YoY) basis in 2025. According to Lodging Analytics Research & Consulting (LARC), 2025 marked the first year on record that RevPAR declined outside of an economic recession. Following three years of slowing RevPAR growth, total RevPAR entered positive territory in Q1 2026. Whether this represents the start of a broader upward movement or a short-lived rebound remains uncertain.

A closer look beyond the headline RevPAR and delinquency figures reveals a growing divergence in performance across hotel price classes that may prove persistent. This KBRA report examines those differences and highlights credit performance across hotel chains, brand parent, and geographic markets. To provide additional context, the analysis identifies the hotel chains and brand parent with the largest delinquent balances, highlighting where delinquency exposure is most concentrated within the CMBS lodging sector.

Key Takeaways:

  • The Upscale and Upper Upscale classes have the highest delinquency rates at 11.3% and 10.9%, respectively. While they collectively represent 41.4% of outstanding balance, they account for 72% of total delinquent balance at $1.6 billion and $2.7 billion, respectively.
  • The Economy and Midscale classes have experienced the largest increase in delinquency rates since March 2024 following three consecutive years of YoY RevPAR declines for Economy and two of three for Midscale with the third being flat. While these classes may continue to face elevated delinquency rates, their impact on overall lodging delinquencies is likely to remain limited, as they account for just 6.3% of all outstanding lodging loans by balance.
  • By chain, Hilton and Courtyard account for over 40% of the total delinquent balance. Hilton (Upper Upscale) has the highest delinquent balance at $1.8 billion (30.1% delinquency rate), while Courtyard has the highest delinquent balance within the Upscale class at $659.1 million (23.3% delinquency rate). Both significantly exceed the overall lodging delinquency rate of 6.4%.
  • By brand parent, Hilton Worldwide has the highest delinquent amount at $2.5 billion, and a delinquency rate of 15.7%, more than double the overall lodging delinquency rate.
  • Of the top 20 metropolitan statistical areas (MSA), San Francisco had the highest delinquent amount ($1.1 billion) and delinquency rate (50.8%), driven largely by a single large loan exposure.

Click here to view the report.

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KBRA, one of the major credit rating agencies, is registered in the U.S., EU, and the UK. KBRA is recognized as a Qualified Rating Agency in Taiwan, and is also a Designated Rating Organization for structured finance ratings in Canada. As a full-service credit rating agency, investors can use KBRA ratings for regulatory capital purposes in multiple jurisdictions.

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