Hotels
Hotel financing
Hotel financing is commercial real estate debt secured by a lodging property, underwritten on the hotel's operating performance (ADR, occupancy, RevPAR), franchise standing and property condition. Programs differ in recourse, leverage and flexibility.
Programs we arrange
- SBA 504 hotel loansBank first lien plus a 25-year fixed CDC debenture for owner-operated hotels.
- SBA 7(a) + 504 hotel stackA combined 7(a) and 504 structure for larger hotel projects.
- Hotel CMBSFixed-rate, non-recourse conduit debt for stabilized hotels.
- PIP bridgeFloating, interest-only debt to complete a franchise renovation before a permanent takeout.
- Hotel to senior living conversionAcquisition and conversion bridge for turning a hotel into licensed senior living.
How to choose a path
Owner-operators usually start with SBA 504, where equity is 15% for special-purpose property and the CDC debenture is fixed for 25 years. Larger stabilized hotels may fit CMBS at 65% or lower leverage, and renovations with an open PIP often start with a bridge.
- Owner-operated: SBA 504 or a 7(a) + 504 stack
- Larger and stabilized, non-recourse preferred: hotel CMBS
- Open PIP or transitional: PIP bridge
- Hotel conversion: acquisition and conversion bridge
Key hotel metrics lenders review
ADR, occupancy, RevPAR, STR comp-set penetration, NOI per key, franchise term remaining and PIP scope. We organize these up front so lenders can underwrite from a complete file.
Frequently asked questions
What is the best loan for a hotel purchase?
Owner-operators often use SBA 504 for the lower fixed cost of the debenture. CMBS fits larger stabilized hotels and a bridge fits properties needing a PIP or repositioning.
Are these offers?
All rates, terms, and sizing are indicative estimates for discussion only, are not a commitment to lend, and are subject to lender underwriting, appraisal, credit approval, and program guidelines in effect at application. Corin Commercial arranges loans as a licensed California real estate broker and is not the lender.
Related financing
- C-PACELong-term assessment-based financing for qualifying building improvements.
- Senior living financingHUD, SBA, bridge and bank options for senior living owners.
- Multifamily financingHUD, agency, bridge and DSCR options for apartment owners.
- Construction financingBank, debt fund, HUD and C-PACE options for construction projects.
Talk through your deal with an advisor
Send the basics and a licensed Corin advisor reviews which programs and lenders may fit, or size the loan yourself first.