Hospitality

Hotel & Hospitality Financing

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.

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Overview

Hotel & Hospitality Financing

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.

Hospitality Subtypes

Full-Service Hotels
Limited-Service / Select-Service
Boutique & Independent Hotels
Extended Stay
Resorts & Spas
Entertainment Venues
Conference & Event Centers
Specialty Hospitality (Aquariums, TopGolf, etc.)

Financing Options

Bank Permanent Loans
CMBS
SBA 504 / 7(a)
Bridge Loans
Construction & Renovation
Mezzanine & Preferred Equity

Track Record

Hospitality Transactions

A selection of hospitality deals we have closed nationwide.

Bridge

$31,000,000

Hotel

Miami, FL

Bridge financing for a boutique hotel repositioning in Miami Beach’s Art Deco Historic District, funding a comprehensive renovation to capture surging leisure and business travel demand in South Florida.

Permanent

$27,500,000

TopGolf / Specialty

Fort Myers, FL

Specialty entertainment venue financing for a nationally branded tenant with long-term lease structure in Southwest Florida.

Hospitality Full-Service Hotel - Honolulu, HI

Permanent

$19,500,000

Hospitality Full-Service Hotel

Honolulu, HI

Permanent financing for a full-service hotel on Oahu, capitalizing on Hawaii's irreplaceable tourism market and supply-constrained hospitality landscape that consistently supports premium RevPAR performance.

Permanent

$18,000,000

Hotel

Washington, DC

Specialty financing for a boutique hotel in DC’s Dupont Circle neighborhood, catering to business travelers and international visitors with strong year-round occupancy driven by government and diplomatic activity.

Hotel Rehabilitation - Santa Barbara, CA

Construction

$8,000,000

Hotel Rehabilitation

Santa Barbara, CA

Comprehensive hotel rehabilitation in Santa Barbara's premium hospitality market, upgrading to boutique luxury positioning.

Bridge

$6,800,000

Boutique Hotel

New Orleans, LA

Bridge financing for a boutique hotel in the New Orleans Warehouse District during a comprehensive renovation, repositioning the property to capture premium rates in one of the nation's top tourism markets.

Hospitality Financing by City

Bridgeport-Stamford, CT

Hilton Head Island, SC

Financing Programs

Hospitality properties qualify for a variety of commercial loan programs. Explore your options.

Mezzanine & Preferred Equity

HUD/FHA Multifamily Loans

CMT + 190 bps to 7.50%

Construction SOFR plus 250 to 400, Permanent locked at close

Related Insights

Market Insights

Hospitality Investing in Palm Springs: A Complete Guide

A comprehensive guide to hospitality investing in Palm Springs, covering market metrics, property subtypes, financing options, top submarkets, and the investment thesis for 2026.

Trevor DamyanOctober 12, 2028

Market Insights

Hospitality Investing in Santa Cruz: A Complete Guide

A comprehensive guide to hospitality investing in Santa Cruz, covering market metrics, property subtypes, financing options, top submarkets, and the investment thesis for 2026.

Trevor DamyanOctober 11, 2028

Market Insights

Hospitality Investing in San Luis Obispo: A Complete Guide

A comprehensive guide to hospitality investing in San Luis Obispo, covering market metrics, property subtypes, financing options, top submarkets, and the investment thesis for 2026.

Trevor DamyanOctober 10, 2028

FAQ

Hospitality Financing FAQ

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.

Finance Your Hospitality Property

Contact Commercial Lending Solutions for a free, no-obligation quote on hospitality financing. We respond within 24 hours.

Apply for Financing →

Call: 310.708.0690 Text: 310.758.3064

Hotel & Hospitality Financing

Hotel & Hospitality Financing

Hospitality Subtypes

Financing Options

Hospitality Transactions

Hospitality Financing by City

Financing Programs

Related Insights

Hospitality Investing in Palm Springs: A Complete Guide

Hospitality Investing in Santa Cruz: A Complete Guide

Hospitality Investing in San Luis Obispo: A Complete Guide

Hospitality Financing FAQ

Finance Your Hospitality Property

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