Get Immediate Access to Every Loan Program Available for Hospitality Properties.
Conventional Loans
Conventional
Conventional loans are typically offered by a bank close to the property being financed or a national bank that lends nationally. We have relationships with dozens of local and national banks that offer conventional financing for hoteliers across the country. Rates are competitive, terms are flexible, and loan amounts are set by the lender and the deal, not by a program cap.
Benefits of a Conventional Loan:
- Competitive rates
- Flexible terms
- Loan amount set by the lender and the deal
Speak with a hotel financing expert
Call 866-994-6835 or complete the form and a hotel financing expert will get back to you. There is no obligation, we never charge an upfront fee, and you do not need to have everything organized before you reach out — we are glad to answer questions even if you are not ready to move forward.
Conventional Commercial Loans
If you are buying a hotel or motel or are thinking of refinancing one, we can help you. Hotel financing is all we do, and we can put our extensive lender relationships to work financing your hotel or other hospitality business.
Obtaining a loan to purchase a hotel or motel can be a large undertaking. If you already own or are thinking of investing in a hotel or motel, we can help you find the loan that is just right for you want to accomplish. One of the loan types we place is a conventional hotel loan.
Do Your Homework Before You Invest
Investing in a hotel or a motel is very big undertaking. You want to work with lenders that understand hotel and motel financing.
Hotel lending conditions move with the wider credit market, and what a lender will consider today is not necessarily what it would have considered a year ago. We track where conventional lenders are actively placing hotel debt and take your deal to the ones whose appetite fits it.
Conventional Loans for Hotel Financing
Loans for hotels can be used for a multitude of purposes. In addition to buying an existing hotel or motel, hotel loans can be used to purchase land, or for construction on a new building. Loans are also available to fund renovation projects and cover various other expenses. These loans can be either short-term or long-term.
When you contact our team about a loan, we can show you the benefits of a conventional loan. A conventional loan is typically offered by a bank, close to the property being financed, or through a national lender that offers conventional financing. We have relationships with dozens of local and national banks, all of which offer conventional financing for hotels and motels across the country. A conventional loan offers you some great benefits including:
- Competitive rates
- Loan amount set by the lender and the deal
- Flexible terms
Conventional hotel lending currently sits around 60–65% LTV, occasionally reaching 70% where there is a long-standing lender relationship and a strong, stabilized property — so borrowers should plan on roughly 35–40% equity. This is what lenders like to see rather than a fixed requirement; every transaction is different, and the property’s cash flow ultimately governs the loan amount. The lender will also want to see there is enough post-closing liquidity left to service the debt for a few months after closing. Typically, a lender wants to see that the borrower has a net worth of close to or greater than the requested loan amount.
Other features of a conventional hotel loan include:
- Term and Amortization – The term and amortization will depend on the lending institution and the type of property being financed. The term can vary from 3 to 15 years while the amortization will be between 20 and 30 years.
- Recourse – Conventional hotel loans are typically full recourse.
- Loan Assumption – A conventional hotel loan may or may not be assumable. Assumption of a loan usually occurs when the borrower sells the property, and another purchaser takes over the loan.
- Declining (Step-Down) Prepayment Penalty – A declining prepayment penalty can be structured in a variety of ways. It always has the same feature of the prepayment penalty lessening by 1% per step with the last 3-12 months open to prepay or refinance without penalty.
Why Work With Us?
Hotel lending can be challenging. Many borrowers are not prepared for, or do not fully understand hotel finance. You do not want to start something that has no chance of finishing. Our conventional hotel financing will help to put you on the path to hotel or motel ownership. We have a deep understanding of hotel lending, and we only work with lenders who specialize in hotel loans.
There are different financing vehicles that can put you in the driver’s seat when it comes to finding the money you need for your hotel or motel. When you contact our team, our hotel financing experts will be here to answer all of your questions about securing a hotel loan.
Keep in mind that you need to show proof of profitability as well as a viable marketing plan. All business operations, not only hotels, need to show a sustainable business model to lenders right out of the box. Lenders want to know that you know what you are investing in.
Let us match you with the loan that is right for you. Contact us today to learn how a conventional hotel loan can benefit you.
Last reviewed: August 2026