Underwrite the opportunity
We review sponsorship, property performance, business plan, and priorities before approaching the market.
Hospitality financing
Financing for Hotels, Motels, and Hospitality Properties
Quick answer: Hotel and motel financing covers acquisition, renovation, refinancing, and ground-up construction for full-service hotels, select-service hotels, extended-stay properties, boutique hotels, and budget motels. Hospitality is one of the most specialized commercial lending categories, requiring lenders with deep franchise and brand relationship experience. Capital sources include CMBS conduits, SBA 504, debt funds, and specialized hospitality lenders. Minimum loan size is $2 million.
NationwideMarket coverage
1,000+Capital relationships
$2MM+CLS engagement floor
24 hoursInitial response
When it fits
When Hospitality financing fits.
Hospitality financing requires lenders who understand RevPAR, ADR, occupancy trends, brand standards, and the operational complexity of hotel assets. Most conventional banks have limited appetite for non-owner-operated hospitality, concentrating lending activity among CMBS conduits, specialized hospitality debt funds, and SBA programs for owner-operated properties. Franchise affiliation (Marriott, Hilton, IHG, Choice, Wyndham) significantly affects lender appetite and loan terms. Flag-affiliated limited-service and select-service hotels in markets with strong corporate and leisure demand are the most lendable. SBA 504 is particularly well-suited for owner-operated boutique and independent hotels seeking long-term fixed-rate financing.
Structure before pricing: leverage, recourse, reserves, prepayment, and closing certainty can matter as much as the headline coupon. We test those trade-offs before recommending a path.
01
Select-service and limited-service hotel acquisitions with major brand affiliations
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Boutique and independent hotel renovations and repositioning
03
Extended-stay property acquisitions in corporate demand markets
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Owner-operated hotel and motel purchases using SBA 504 financing
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Hotel-to-residential or mixed-use adaptive reuse conversions
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Ground-up hotel construction near airports, convention centers, and tourist destinations
Lender selection
How We Source Hospitality Capital
We do not treat the lender list as a directory. We target the desks whose current appetite fits the asset, sponsorship, market, and business plan, then compare the full execution, not only the rate.
| Capital source | Where it may fit |
|---|---|
| CMBS Conduits | Non-recourse execution with broad property appetite, balanced against more standardized servicing and prepayment provisions. |
| SBA 504 and 7(a) | Government-supported owner-occupied financing with program-specific eligibility, occupancy, and documentation standards. |
| Debt Funds | Flexible capital for transitional, complex, leveraged, or time-sensitive executions where conventional credit boxes may not fit. |
| Hospitality-Focused Bridge Lenders | Flexible short-term capital for acquisition, lease-up, renovation, repositioning, or other transitional business plans before stabilization or sale. |
| Life Insurance Companies (flagged, full-service) | Long-duration fixed-rate capital for high-quality assets and experienced sponsors, generally with conservative leverage. |
How we work
One process. Multiple capital sources.
We position the transaction, identify the lenders most likely to compete, and compare proposals on economics and execution risk, not just headline rate.
A well-structured financing process should create real choices for the borrower, not simply deliver the first term sheet.
Target the right lender desks
The transaction is matched to lenders whose current appetite fits the property, market, and structure.
Create a comparable field
Proposals are evaluated across rate, proceeds, recourse, reserves, prepayment, and closing certainty.
Manage execution through closing
We coordinate lender diligence, third-party reports, and issue resolution until the loan funds.
National reach
Market knowledge where the deal requires it.
We arrange hospitality financing nationwide while matching each transaction to capital sources active in that market and property type.
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 asset, sponsorship, and market. These are the starting parameters we discuss most often.
Working out equity? Our commercial property down payment guide covers typical requirements by loan type: 20% to 30% conventional, 10% for SBA owner occupied.
Hotel and motel financing covers acquisition, renovation, refinance, and ground-up construction for full-service, select-service, extended-stay, boutique, and budget properties. Loan amounts run from $2 million to $50 million and above. Because hospitality income resets nightly, most of the capital comes from CMBS conduits, debt funds, and hospitality-focused bridge lenders rather than conventional banks.
Hospitality pricing generally runs 6.00% to 12.00%, the widest spread of any commercial asset class. Permanent debt carries 5 to 25 year terms, fixed or floating, and prices at the low end for flag-affiliated select-service assets with steady trailing performance. Bridge and renovation debt runs 12 to 36 months and prices toward the top of that band.
Leverage tops out near 70% of value, lower than most commercial property types, because a hotel re-leases every room every night and has no contractual rent to underwrite. Proceeds are usually constrained further by debt service coverage and debt yield tests applied to trailing income. Non-recourse is available through CMBS conduits.
Underwriters work from trailing twelve month RevPAR, average daily rate, and occupancy, then benchmark the property against its competitive set to see whether it is gaining or losing share. Remaining franchise term, brand quality scores, the reserve for furniture, fixtures, and equipment, and any pending property improvement plan all shape proceeds. An unfunded improvement plan is the most common deal killer.
Hospitality bridge and renovation debt typically funds in three to six weeks. CMBS and other permanent hotel loans run 45 to 90 days because franchise comfort letters, brand approvals, and third-party reports sit on the critical path. Commercial Lending Solutions arranges this financing and tracks which hospitality desks hold open appetite by flag and market.
Let's evaluate the right hospitality structure.
Share the property and financing request. We will respond within 24 hours with an initial view.