Hospitality Property Financing
Hotels and hospitality properties offer unique investment opportunities with operating business characteristics. We provide specialized financing that understands the lodging industry.
Industry Challenges
Operating business component adds complexity
Revenue volatility and seasonality
PIP (Property Improvement Plan) requirements
Brand and franchise considerations
Management and staffing intensity
Our Solutions
Specialized hospitality lending expertise
Underwriting accounts for seasonality
PIP financing included in loans
Experience with flagged and independent hotels
Bridge loans for repositioning and renovations
Hospitality Property Financing
Hotels represent a unique intersection of real estate and operating business. We understand the hospitality industry and provide financing solutions for hotels, motels, and extended stay properties.
Hotel Types We Finance
Full-Service Hotels
- Major brand affiliations
- F&B and meeting space
- Higher service levels
Select-Service Hotels
- Limited food service
- Mid-tier brands
- Efficient operations
Extended Stay
- Suite-style accommodations
- Kitchen facilities
- Longer average stays
Independent Hotels
- Boutique and lifestyle
- Non-branded properties
- Unique positioning
Key Underwriting Factors
Operating Performance
- RevPAR (Revenue Per Available Room)
- Occupancy and ADR trends
- GOP and NOI margins
Market Position
- Competitive set analysis
- Demand generators
- Supply pipeline
Brand Considerations
- Franchise agreement terms
- PIP requirements
- Brand standards compliance
Management
- Operator experience
- Management agreement
- Asset management capability
Investment Strategies
Stabilized Acquisitions Well-performing hotels with strong flags:
- Cash flow based financing
- Longer-term options available
- Refinancing existing debt
Value-Add / Repositioning Hotels needing renovation or rebranding:
- Bridge financing flexibility
- PIP cost inclusion
- Ramp-up period reserves
Flag Conversions Converting brand or going independent:
- Renovation financing
- Marketing ramp-up period
- Revenue stabilization timeline
Loan Parameters
- Loan Size: $2M - $50M+
- LTV: Up to 70% depending on performance
- DSCR: 1.35+ for permanent loans
- Experience: Strong operator requirement
Branded Hotel Conversion
An experienced hotel operator acquired an independent hotel in a strong market and secured a franchise agreement with a major brand. Our bridge loan covered acquisition and PIP costs to meet brand standards. RevPAR increased 40% following the brand conversion.
Available Programs
Hotel Acquisition Loans
Purchase financing for hotels and motels
PIP Financing
Loans for Property Improvement Plan requirements
Hotel Bridge Loans
Short-term financing for repositioning projects
Extended Stay Loans
Financing for extended stay and aparthotel properties
Other Industries
View All IndustriesReady to Get Started?
Our team specializes in hospitality financing. Let us help you find the right solution for your business.