Hotel & Hospitality Property Loans.
From boutique hotels to flagged limited-service properties — we connect you to lenders who specialize in hospitality financing across all segments and flag affiliations.
What Type of Hotel Are You Financing?
Hospitality is a specialized CRE asset class. Lender appetite depends on flag affiliation, market position, and operating performance.
Loan Options for Hotel Properties
Hotel lending is more specialized than other CRE. Flag affiliation and operating history significantly affect available options.
Ideal for owner-operators buying a flagged hotel. PIP (Property Improvement Plan) costs can be included. Requires hospitality management experience.
Banks require strong operator experience, flagged brand, and 2+ years of STR (Smith Travel Research) performance data. Higher down payment than other CRE.
Non-recourse for stabilized, flagged hotels with proven RevPAR. Yield maintenance prepayment. Ideal for portfolio hotel investors.
Short-term financing for hotel renovations, brand conversions (flag changes), and PIP compliance. Takeout into permanent financing once stabilized.
What Lenders Evaluate for Hotel Loans
How Hotel Financing Works
Share Your Deal
Property details, room count, flag affiliation, STR data (RevPAR, ADR, occupancy), PIP requirements, and purchase price or estimated value.
Submit to BestLoanUSA
Single application. Include your hospitality management experience and operating history. No hard credit pull.
Advisor Review
Dedicated advisor evaluates your hotel’s flag status, market position, STR performance, and PIP timeline to recommend SBA, conventional, CMBS, or bridge financing.
Lender Matching
We submit to hospitality-specialist lenders. Flagged hotels access a wider lender pool. You receive competing term sheets.
Underwriting & Appraisal
Hospitality-specific appraisal with income approach, STR comp analysis, and PIP cost review. Provide trailing 12-month P&L, franchise agreement, and management contracts.
Close & Operate
SBA: 60–90 days. Conventional: 45–60 days. CMBS: 60–90 days. Bridge: 21–45 days. FF&E reserves typically required post-close.
Ready to Finance Your Hotel Property?
No credit pull. No commitment. See what hospitality financing options are available.
Frequently Asked Questions
Hotels are operating businesses, not just real estate. Revenue fluctuates with occupancy, seasonality, and economic cycles. There are no long-term leases guaranteeing income. Lenders require higher down payments (25–40%), stronger DSCR (1.30x+), and proven management experience to mitigate this risk.
Enormously. Flagged hotels (Marriott, Hilton, IHG, Wyndham, Choice, Best Western) get significantly better financing terms than independent properties. The flag provides a national reservation system, loyalty program, brand recognition, and quality standards that reduce risk for lenders. Some lenders won’t finance independent hotels at all.
A Property Improvement Plan (PIP) is the franchise brand’s required renovation scope to bring a hotel up to current brand standards. PIP costs can range from $5K to $25K+ per room. Lenders factor PIP cost into the total project. SBA 504 can include PIP in the loan. Bridge loans are common for PIP execution before permanent financing.
Yes. SBA 504 is available for owner-operated hotels with as little as 10–15% down. You must actively manage the property (not passive investment). Flagged hotels with an experienced operator get the smoothest SBA approval. PIP and FF&E costs can be included in the total project.
FF&E (Furniture, Fixtures, and Equipment) reserve is money set aside annually for ongoing replacement of hotel room furnishings, lobby furniture, and equipment. Most lenders and franchise agreements require 4–5% of gross revenue deposited annually into an FF&E escrow account.
Smith Travel Research (STR) reports showing your hotel’s RevPAR, ADR, and occupancy compared to a competitive set. Lenders want to see trailing 12-month performance at or above the comp set average. STR data is the industry standard for hotel performance benchmarking and is required by virtually all hotel lenders.
