Hotel & Hospitality Loans | $1M to $100M+ | Commercial Lending Solutions

The Best Hotel Financing, Tailored to Your Deal

Hotel and hospitality properties require specialized lenders who understand revenue per available room (RevPAR), seasonal cash flow patterns, and the unique operating dynamics of the lodging industry. Whether you're acquiring a flagged hotel, refinancing an independent property, or financing a PIP renovation, Commercial Lending Solutions connects you with the right lender and the right program for your specific situation.

As a commercial mortgage broker with access to over 1,000 lenders, including SBA lenders, banks, credit unions, CMBS conduits, and hospitality-focused debt funds, we present your deal to multiple capital sources simultaneously and negotiate the best terms on your behalf.

Hotel Loan Programs

Program	Rate	Term	LTV
SBA 504	6.25%, 7.00%	25 yr	Up to 90%
Bank / Credit Union	6.50%, 7.50%	5-10 yr	Up to 70%
CMBS	7.00%, 8.00%	5-10 yr	Up to 65%
Bridge	8.50%, 11.00%	12-36 mo	Up to 70%

Rates shown are approximate ranges as of Q1 2026 and vary by flag/brand, room count, market, borrower experience, and market conditions.

Common Hotel Use Cases

Acquisition

Financing for purchasing hotels and hospitality properties. We match your deal with the best acquisition loan program based on flag affiliation, market performance, and your operating experience.

Refinance

Lower your rate, extend your term, or pull cash out of your stabilized hotel asset. Take advantage of improved performance metrics to secure better financing terms.

PIP / Renovation

Property Improvement Plan financing for brand-mandated renovations, room upgrades, and facility improvements. Bridge capital to fund renovations with a clear refinance exit strategy once improvements are complete.

Brand Conversion

Financing for converting an independent hotel to a flagged brand or switching franchise affiliations. Fund the conversion costs and capitalize on the revenue uplift from brand recognition and distribution systems.

Property Types We Finance

Limited-service hotels
Full-service hotels
Extended-stay properties
Boutique & independent hotels
Resorts
Motels
Flagged hotels (Marriott, Hilton, IHG, etc.)
Select-service hotels

Why Use a Hotel Loan Broker?

Hotel financing is one of the most specialized areas of commercial real estate lending. Not all lenders understand hospitality metrics, seasonal revenue patterns, or franchise requirements. Going directly to one lender means you get one set of terms. Working with Commercial Lending Solutions, your deal reaches lenders who actively seek hotel deals.

Access to 1,000+ lenders, including specialized hospitality and SBA lenders
One application, multiple competing term sheets
We negotiate on your behalf, rate, fees, prepayment flexibility, interest-only periods, and FF&E reserve requirements
Dedicated broker managing your deal from application through funding
No upfront fees, we only get paid when your loan closes

Prefer to talk? Call the broker directly.

310.708.0690

Trevor Damyan · Mon-Fri 9am-5pm PT

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FAQ

Hotel Loan Questions

A flag (franchise affiliation with brands like Marriott, Hilton, or IHG) is not strictly required but significantly improves your financing options. Flagged hotels benefit from brand recognition, centralized reservation systems, loyalty programs, and established operating standards, all of which reduce lender risk and translate to better loan terms. Independent hotels can still secure financing, but lenders will scrutinize the property's track record, management team, market position, and online reputation more closely. SBA 504 loans are available for both flagged and independent hotels. Commercial Lending Solutions works with lenders who finance both flagged and independent properties.

Yes. Property Improvement Plans are a common part of hotel ownership, typically required by the brand every 5-7 years. PIP financing options include: bridge loans that fund the renovation costs with a refinance exit, bank loans with renovation holdback provisions, SBA 504 loans for owner-operators making major improvements, and mezzanine or preferred equity for larger renovations. The key is having a clear budget, timeline, and post-renovation financial projection. Lenders want to see that the renovation will result in increased RevPAR and property value that supports the total loan amount. Commercial Lending Solutions helps hotel owners structure PIP financing that minimizes disruption to operations.

Seasonality is a key factor in hotel lending. Lenders evaluate hotel performance using trailing 12-month (T12) financials to capture a full seasonal cycle. Markets with extreme seasonality (beach resorts, ski towns) may face more conservative underwriting, with lenders stress-testing the loan against off-season revenue levels. Hotels in year-round demand markets (major metros, business travel hubs) typically receive more favorable terms. Lenders also look at the property's ability to cover debt service during the weakest months, not just annually. A strong FF&E (furniture, fixtures, and equipment) reserve is particularly important for seasonal properties to maintain quality during off-peak periods.

Yes. The SBA 504 loan program is one of the best financing options for owner-operated hotels. SBA 504 loans offer up to 90% financing (compared to 65-70% with conventional hotel loans), below-market fixed rates, and 25-year fully amortizing terms. This means significantly lower monthly payments and no balloon maturity risk. The borrower must be a for-profit business that operates the hotel (or plans to). Franchise hotels and independent hotels both qualify. SBA loans are particularly popular for acquiring first-time hotel investments, converting properties, and funding major renovations. Commercial Lending Solutions works with multiple SBA Certified Development Companies (CDCs) specializing in hospitality lending nationwide.

Important Loan Disclosures

Representative Example: A $15,000,000 hotel loan at a 7.00% fixed rate with a 10-year term and 25-year amortization would have an estimated monthly principal and interest payment of approximately $106,000. Total amount repayable over the 10-year term: approximately $12,720,000 (balloon balance due at maturity). This example is for illustrative purposes only; your actual rate, payment, and terms may differ.

Rate Range: Hotel loan rates currently range from approximately 6.25% to 8.50%, depending on program type (SBA, bank, CMBS, bridge), flag affiliation, room count, market, and conditions at the time of funding.

Fees: Origination fees typically range from 0.5% to 2.0% of the loan amount. Additional costs may include appraisal ($5,000-$15,000), legal fees ($5,000-$15,000), franchise approval fees, title insurance, environmental reports, and third-party inspections. All fees will be disclosed in writing before loan commitment.

Loan Terms: Hotel loan terms range from 5 to 25 years with SBA, bank, CMBS, and bridge execution available. Non-recourse financing available for qualifying properties and borrowers. Prepayment penalties (yield maintenance, defeasance, or step-down) may apply depending on the program. FF&E reserve requirements typically range from 3-5% of gross revenue.

Risks: Hotel and hospitality loans carry inherent risks including but not limited to: revenue volatility, seasonal demand fluctuations, brand/franchise requirements, renovation costs, competitive supply additions, economic downturns affecting travel, and potential loss of invested equity or the property itself. Borrowers should consult with qualified financial, legal, and tax advisors before committing to any loan.

Broker Disclosure: Commercial Lending Solutions (Commercial Lending Solutions) is a commercial mortgage brokerage, California DRE License #02244836. Commercial Lending Solutions does not make loans directly. All loans are originated and funded by third-party lenders. Commercial Lending Solutions receives compensation from the borrower, the lender, or both upon successful loan closing. Commercial Lending Solutions is not affiliated with or endorsed by any specific lender.

Hotel & Hospitality Loans: $2M-$75M | Full & Limited Service