Who We Help: Hotel Buyers, Builders and Owners

The Situations We Work On

• Buying a hotel

  Whether it's your first hotel or your fifth, we'll find the financing that fits the property, your experience and how much you want to put down.

  For an acquisition, SBA 7(a) can finance up to 85% of total project cost, which can include the PIP, so the buyer generally brings about 15% equity. Experienced owners buying a stabilized hotel often look at conventional bank financing as well. We tell you up front what lenders will expect.

  Financing a hotel purchase

• Building a hotel

  Ground-up construction financing from lenders who know hotels, from land and brand approval through opening.

  Lenders look for franchise approval of the project, a market feasibility study that supports it, a general contractor who has completed hotel projects and a sponsor with the liquidity the project needs. We help you put that package together before it goes to lenders.

  Financing hotel construction

• Refinancing or funding a PIP

  Conventional bank and SBA options for stabilized hotels, plus help when a PIP or loan maturity is coming.

  Start early. Owners who wait until a maturity or rate reset is close have fewer lender options and less room to negotiate. Lenders reviewing a refinance focus on cash flow, DSCR and debt yield, and many want three or more years of consistent performance.

  Refinancing a hotel

• Closing fast or turning a hotel around

  Tight contract deadline, a reflag or an underperforming property? We'll line up bridge financing for the transition, with a plan for what comes next.

  Bridge loans are short-term, interest-only financing, typically 12 to 24 months with extensions available up to 36 months, used while a hotel is repositioned, rebranded or stabilized. Lenders want an experienced sponsor and a clear exit into permanent financing.

  Financing a turnaround

• Renovating or repositioning a hotel

  A brand-mandated PIP, a renovation or a repositioning can often be financed together with the purchase or the refinance.

  SBA 7(a) is the most accommodating program for this, because the PIP can be included in total project cost; it is harder with conventional and CMBS financing. Lenders treat a PIP due within 24 to 36 months as part of total project cost, which tightens leverage and often brings reserve requirements, so we build it into the structure from the start.

  Compare hotel loan programs