Hotel loans in the United States come from a handful of firm types: banks and credit unions, SBA lenders, CMBS lenders, debt funds and private lenders, life companies, and mezzanine and preferred-equity providers. Other firms help borrowers find and prepare for the right one. Each type is built for a different kind of hotel and a different stage of ownership, so the real question to ask before you fill out a single application is which of them fits your deal.
This article maps the types of hotel lenders by firm type, not by brand name, so you can see at a glance which kind of hotel lending company typically fits your acquisition, refinance, PIP, or turnaround. We built a firm-type comparison table and a deal-situation table to make that match easier to see, and we note who each one is not built for. Hotelloans.com structures, underwrites, and places financing for hotel properties nationwide with lender partners, and those lender partners fund the loans and issue the term sheets.
Start with the map below, then use the tables to narrow your options fast.
Key takeaways
- Six main kinds of firms fund hotel loans, including banks and credit unions, SBA lenders, CMBS lenders, debt funds and private lenders, life companies, and mezzanine or preferred-equity providers.
- Each firm type typically fits a different hotel profile and ownership stage, from a first acquisition to a brand-mandated renovation.
- A lender funds the loan and issues the term sheet. A firm like Hotelloans.com structures, underwrites, and places the deal with the lender partner that fits.
- The deal in front of you, not the brand name on the door, should decide which kind of firm you approach first.
What kinds of firms lend on hotels?
Hotel loans in the United States come from six main kinds of firms, and each one lends on a different type of hotel deal. Banks and credit unions, SBA lenders, CMBS lenders, debt funds and private lenders, life companies, and mezzanine or preferred-equity providers make up the core group of hotel financing companies active in this market. Some hold loans on their own balance sheet, some sell loans into bond pools, and some supply capital that sits above or alongside the main loan. Knowing what each one typically funds, and on what kind of hotel, narrows your search before you pick up the phone.
- Banks and credit unions make conventional (balance-sheet) hotel loans from their own balance sheet on hotels that are performing or close to stabilized, covering acquisitions, refinances, renovations, and bridge-to-permanent executions. Larger banks with dedicated hospitality teams tend to focus on bigger flagged assets, institutional borrowers, portfolio loans, and ground-up construction. Underwriting from a bank is often tighter than borrowers expect, and full recourse, meaning the borrower’s own assets stand behind the loan, is the norm rather than the exception. This path typically fits an experienced owner with a strong deal and a clear story who wants a cleaner, more direct structure with less program complexity. Learn more about conventional hotel loans.
- SBA lenders, many of them banks, make SBA 7(a) loans, where the U.S. Government guarantees a percentage of the loan, and some national SBA preferred lenders specialize in hotels. That guarantee is why underwriting can be more flexible on a borrower’s experience, credit, and cash flow than a straight bank loan allows. An SBA 504 loan pairs a bank in first position with a Certified Development Company in second, suiting owner-occupied property held for the long term. The SBA 7(a) maximum is $5 million, the SBA/CDC portion of a 504 loan is up to $5 million for a hotel, and the bank portion of a 504 is not capped by the SBA. Eligible borrowers can combine the two programs for up to $10 million total, up to $5 million through each, under the SBA’s doubled cumulative 7(a) and 504 loan limit. Since March 1, 2026, every direct and indirect owner must be a U.S. citizen or U.S. national whose principal residence is in the United States; where an owner does not meet that rule, the banks and private lenders in this article remain open. See SBA hotel loans for program detail.
- CMBS lenders pool hotel loans and sell them into the capital markets as bonds, so they focus on stabilized, income-producing hotels with a strong operating history rather than transitional properties. CMBS financing tends to become common above $10 million, though most CMBS lenders will start around $5 million. These loans are generally non-recourse with standard carve-outs, but they carry more rigid reporting, reserve, and cash-management requirements, and paying the loan off early is expensive. This structure typically suits an owner who plans to hold the hotel through the full term. Review CMBS hotel loans for more detail.
- Debt funds and private lenders provide bridge loans for hotels in transition, covering acquisitions, value-add renovations, brand-mandated property improvement plans, rebranding, turnarounds, and a refinance where a balloon payment came due when conventional financing was not available. These lenders understand the hotel is in transition and focus on whether the borrower can execute the plan, and above all on a clear exit. They still want an experienced borrower, a credible business plan, and realistic execution. The real difference between a bank and a debt fund on a hotel loan comes down to time horizon and what the loan is underwritten against: a bank lends long-term against a stabilized hotel’s cash flow, while a debt fund or private lender lends short-term against the plan and the exit. Where cost comes up, bridge financing is generally priced above conventional bank debt to reflect its shorter term and transitional risk. Explore hotel bridge loans for more on how the structure works.
- Life companies lend from their own balance sheet and, alongside institutional banks, tend to dominate loans above roughly $15 million to $20 million, leaning heavily on debt yield, which is net operating income divided by the loan amount, when sizing a loan. Beyond that, specifics depend on the individual lender and the deal in front of them.
- Mezzanine and preferred-equity providers supply capital that sits above the senior loan, stepping in when the senior lender’s maximum loan amount leaves a gap the sponsor doesn’t want to fill entirely with equity. Mezzanine debt is secured by a pledge of the ownership interests rather than the real estate itself, while preferred equity is structured as an equity investment with a priority return. Mezzanine capital tends to appear once the senior loan reaches somewhere in the $10 million to $20 million range or higher. See hotel mezzanine financing for how the structure works, and the hotel loan programs we place for preferred equity.
How hotel lending differs from other commercial real estate lending
A hotel is an operating business as much as it is real estate, and that is why hotel financing companies underwrite a hotel loan differently from a loan on an office building or a strip mall. Lenders read occupancy, average daily rate, management, and the franchise brand alongside location and condition, because those operating results drive the cash flow that repays the loan. That is also why it matters whether a firm holds hotel loans regularly and which hotels it actually lends on. For the full set of selection criteria, see how to choose a hotel lender.
Hotel lenders compared by firm type
Comparing hotel financing companies by firm type is a practical way to see where your deal fits. The table below lines up each kind of firm against loan programs, typical deal stage, recourse posture, underwriting style, and what it typically asks for, without pinning down a specific rate, spread, or leverage figure, since those vary by lender and deal.
Treat it as a starting map rather than a final answer, since two banks or two debt funds can structure the same program differently depending on their own credit standards. Which kind of firm fits still comes down to the specifics of your hotel and your plan for it.
A quick table of hotel lenders by firm type
| Firm type | Loan programs | Typical deal stage | Recourse | Underwriting | What it asks for |
|---|---|---|---|---|---|
| Banks and credit unions | Conventional, also SBA | Acquisition, refinance, renovation, bridge-to-perm, construction at larger banks | Full recourse is the norm | Often tighter than borrowers expect | Stable cash flow, a sponsor who understands hospitality, strong credit |
| SBA lenders | SBA 7(a), SBA 504 with a bank and a CDC | Acquisition, PIP with the acquisition, renovation, expansion, construction (504) | Set by the program and the deal | More flexible under 7(a), less flexible under 504 | SBA eligibility, including the ownership rule |
| CMBS lenders | CMBS | Stabilized, income-producing hotels | Generally non-recourse, with standard carve-outs | Structured, with reporting, reserves, and cash management | A strong operating history and consistent cash flow |
| Debt funds and private lenders | Bridge | Acquisition, value-add, PIP, rebrand, turnaround, refinance at a balloon | Non-recourse considered where there is good reason | Higher risk tolerance, focused on the plan | Transitional experience, a credible business plan, a clear exit |
| Life companies | Balance-sheet loans | Depends on the lender and the deal | Depends on the lender and the deal | Lean heavily on debt yield | Larger loans on institutional-quality hotels |
| Mezzanine and preferred-equity providers | Mezzanine, preferred equity | Acquisition, PIP-driven repositioning, recapitalization, refinance at maturity | Mezzanine is secured by a pledge of ownership interests, preferred equity is equity | Selective about the sponsor | A proven track record, strong net worth and liquidity, a clear exit |
Which kind of firm typically fits your deal?
Matching a hotel deal to a firm type starts with naming the situation you’re actually in. A first acquisition, a refinance of a stabilized hotel, a brand-mandated PIP or rebrand, a turnaround, and a larger deal needing capital above the senior loan each point toward a different kind of hotel lending company. CMBS, for example, typically isn’t built for an owner who needs flexibility for brand changes or major capital work after closing, since the structure stays tight once the loan is in place. Bridge financing isn’t built for a borrower without a credible plan to repay or refinance the loan, since the lender underwrites the exit as much as the property itself.
A table matching deal situation to firm type
Matching the situation to the firm type below is a starting point, and the right fit still depends on your hotel’s condition, your experience, and your financial position.
| Deal situation | Firm type that typically fits |
|---|---|
| First hotel acquisition | SBA 7(a) lenders often fit, with banks fitting where the buyer has experience and liquidity |
| Refinance of a stabilized hotel | Banks or CMBS lenders, depending on the hotel and the owner’s view on recourse and holding period |
| Brand-mandated PIP or rebrand | Debt funds and private lenders through bridge financing, often followed by permanent financing once the hotel stabilizes, or SBA 7(a) where the PIP is financed with the acquisition |
| Turnaround or underperforming hotel | Debt funds and private lenders, paired with a clear business plan and exit |
| Larger deal with a gap above the senior loan | Mezzanine or preferred-equity providers alongside a senior lender |
Hotel lender vs hotel loan advisor: who funds the loan and who arranges it
Does a broker or advisor lend the money? No. The lender funds the loan and issues the term sheet. A firm that arranges hotel financing does something different: it helps you find the right kind of lender for your deal, prepares the application so it reads clearly, and presents the numbers in a way the lender’s credit team can follow. Hotelloans.com structures, underwrites, and places financing for hotel properties nationwide, underwriting each transaction internally and preparing the credit memo and loan package before it goes anywhere, while its lender partners fund the loans and issue the term sheets. That distinction matters because the firm that prepares your deal is not the one that funds it.
Our process runs in five steps, in order:
- Free consultation, where we discuss your deal and goals.
- Viability review, where you share initial documents and we determine if the project is financeable.
- Formal engagement, when we gather the deeper detail needed for the lender proposal.
- Underwriting and matching, where we identify the loan type that fits your goals and bring the project to our lender network.
- Term sheet to closing, where we stay engaged through the finish.
See our five-step process for more on each step.
How to tell whether a firm actually lends on hotels
Not every firm that advertises hotel financing actually holds hotel loans or lends on them with any regularity, so a few direct questions before you send documents can save you time. The answers tell you whether you are talking to a firm with real hospitality depth, or an occasional lender that treats a hotel like any other commercial property. Asking these questions up front also helps you sort which lenders offer hotel financing that genuinely fits your situation from firms for which hospitality is occasional business.
- Does this firm hold hotel loans today, or is hospitality occasional business for it?
- Which loan programs does it offer for hotels, such as conventional, SBA 7(a) or 504, CMBS, bridge, or mezzanine? A firm limited to one program can only tell you whether your deal fits that program, not how it compares against another.
- Which hotels does it lend on, flagged or independent, stabilized or in transition, and at what loan size? This tells you quickly whether your property sits inside or outside its typical lending profile.
- Who underwrites the loan, and who makes the final decision? Ask whether a team that works on hotels underwrites the deal, and who has to sign off on it.
What lenders commonly ask for at the start
Most hotel lenders, regardless of type, ask for a similar starting set of documents before they will size a loan:
- Personal financial statements
- Three years of business tax returns
- A recent profit and loss statement
- STR reports showing the hotel’s performance against its competitive set
- An appraisal, typically requested later in the process
The exact list still depends on the lender and the deal in front of them, so treat this as a starting checklist rather than the full picture.
Finding the kind of firm that fits your deal
The deal in front of you decides which kind of hotel financing company you should approach first. A first acquisition, a stabilized refinance, a brand-mandated renovation, and a turnaround each point toward a different part of the hotel lending market, and matching the loan type to the situation is the real work before you submit anything.
A free consultation is where we look at your deal and talk through which kind of firm it typically fits. Call or complete the form to speak with a hotel financing expert. We will talk through your deal and review your documents at no charge, with no obligation — and you do not need to have it all organized first.
