Underwrite the opportunity
We review property performance, sponsorship, business plan, and financing priorities.
Hospitality capital
Hotel & Hospitality Financing
Quick answer: Hospitality financing covers hotels, motels, resorts, and specialty entertainment venues. As operating businesses with volatile revenue streams, hospitality properties require lenders with specific expertise in underwriting room revenue, occupancy trends, and management quality. Sources include banks, CMBS conduits, SBA programs, and specialized hospitality lenders.
NationwideMarket coverage
1,000+Capital relationships
$2MM+CLS engagement floor
24 hoursInitial response
Property fit
Financing hospitality assets.
Hotel financing is among the most complex in commercial real estate due to the operating business nature of the asset. Lenders evaluate not just the real estate but also brand affiliation, management quality, competitive set positioning, and market-level supply/demand dynamics. CLS CRE has financed boutique hotels, flagged properties, entertainment venues, and specialty hospitality assets, bringing deep lender relationships and structuring expertise to every deal.
Underwriting starts with the asset: income durability, tenancy or operations, physical condition, market position, sponsorship, and the proposed business plan shape the lender universe.
01
Full-Service Hotels
02
Limited-Service / Select-Service
03
Boutique & Independent Hotels
04
Extended Stay
05
Resorts & Spas
06
Entertainment Venues
07
Conference & Event Centers
08
Specialty Hospitality (Aquariums, TopGolf, etc.)
Capital options
How we approach hospitality financing.
We match the property, sponsorship, and business plan to lenders with current appetite, then compare proceeds, pricing, recourse, reserves, prepayment, and closing certainty.
| Financing path | Where it may fit |
|---|---|
| Bank Permanent Loans | Relationship-oriented capital that can offer local market knowledge and structural flexibility, with recourse often considered. |
| CMBS | Non-recourse execution with broad property appetite, balanced against more standardized servicing and prepayment provisions. |
| Government-supported owner-occupied financing with program-specific eligibility, occupancy, and documentation standards. | |
| Bridge Loans | Flexible short-term capital for acquisition, lease-up, renovation, repositioning, or other transitional business plans before stabilization or sale. |
| Construction & Renovation | Draw-based financing for ground-up development, major renovation, or conversion, sized to budget, schedule, sponsorship, and the planned permanent exit. |
| Mezzanine & Preferred Equity | Subordinate capital that can fill the gap between senior debt and sponsor equity, with returns and controls matched to execution risk. |
How we work
One process. Multiple capital sources.
The objective is not simply to find a lender. It is to create a credible, comparable set of financing choices around the transaction.
Property-level insight and lender appetite have to meet before pricing becomes meaningful.
Target active lender desks
The request is matched to capital sources that understand the asset and market.
Compare complete proposals
Rate, proceeds, recourse, reserves, prepayment, and execution risk are evaluated together.
Manage the closing
We coordinate lender diligence, third-party reports, documentation, and issue resolution through funding.
Selected closings
Hospitality financing in practice.
National reach
Market knowledge where the asset requires it.
We arrange hospitality financing nationwide while accounting for local property fundamentals and lender appetite.
Atlanta, GABoston, MAChicago, ILDallas, TXDenver, COHouston, TXLos Angeles, CAMiami, FLNashville, TNNew York, NYPhoenix, AZSan Diego, CASan Francisco, CASeattle, WATampa, FL
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Questions
Hospitality financing, clarified.
The final structure depends on the property, sponsor, market, and requested execution.
Sizing your equity? See the down payment guide for commercial property: typically 20% to 30% down, with SBA owner occupied from 10%.
Hotel lenders evaluate revenue per available room (RevPAR), occupancy rates, average daily rate (ADR), brand affiliation, management quality, competitive set positioning, market supply/demand dynamics, and the property's physical condition and capital expenditure needs.
Hotel loan rates range from 6.00% to 9.00%+ for permanent financing, with flagged properties at the lower end and independent hotels at the higher end. Bridge and renovation loans range from 8.00% to 13.00% depending on the transition plan.
Yes. Owner-operated hotels qualify for SBA 504 and 7(a) financing with up to 85-90% leverage. This is ideal for smaller, independent hotels where the owner actively operates the business. Flagged hotels may also qualify if the owner meets SBA requirements.
Generally yes. Hotels are considered higher risk due to their operating business nature and revenue volatility. Rates are typically 50-200 basis points higher than comparable multifamily or industrial financing, and leverage may be more conservative.
Most hotel lenders require a minimum debt service coverage ratio (DSCR) of 1.35x to 1.50x, compared to 1.20x to 1.25x for stabilized multifamily or industrial properties. Higher DSCR requirements reflect the operating business risk inherent in hospitality assets.
Let's evaluate your hospitality financing request.
Share the property and transaction. We will respond within 24 hours with an initial view.