Capital for hotels, motels, Airbnb operators, and hospitality businesses — seasonal gap bridging, renovation funding, and staff payroll capital.
We fund hospitality & hotels businesses across the country. One application gets your file in front of 70+ lenders competing to offer you the best terms — no collateral required, all credit profiles considered.
Hospitality businesses — hotels, motels, B&Bs, vacation rentals, resorts, event venues — share two structural traits that shape funding: high capital intensity (real estate is typically 60–80% of total business value) and revenue tied directly to occupancy. The capital intensity makes SBA 504 and conventional commercial real estate loans dominant for property purchases. The occupancy dependency makes working capital products fit cyclically — busy season builds reserves, slow season draws them down or borrows.
The 2020-2022 disruption reshaped hospitality lending materially. Pre-pandemic, hospitality was considered a core SBA category with strong lender appetite. Post-pandemic, lenders apply tighter occupancy stress tests and require larger reserves. This means more documentation, longer underwriting, and slightly higher rates than other industries at equivalent credit profiles — but the products are still available and active for established operators.
| Product | Fit | Notes |
|---|---|---|
| SBA 504 (Real Estate) | Best for property | Hotel/motel real estate purchase or major renovation. 7.5–9.5% fixed (debenture portion). 10–25 year terms. 10–15% down. |
| SBA 7(a) | For mixed use | Working capital + equipment + improvements combined. 9.75–13.25% APR. Up to $5M. |
| Commercial Real Estate Loan | Conventional path | Bank or non-bank CRE lenders. 7–11% APR for established operators. 60–80% LTV typical. |
| Equipment Financing | Specific use | PMS systems, kitchen equipment, FF&E, vehicles. 10–18% APR. |
| Working Capital MCA | Cash flow bridge | Off-season bridges, payroll cycles, pre-renovation. 1.25–1.40 factor. Funds 24–72hr. |
| Line of Credit | 2+ year operators | For seasonal cash management. 14–22% APR. Best for properties with predictable seasonality. |
The 6 most common capital deployments we see across our hospitality clients, with the funding product that fits each.
$1M–$15M+ asset purchase. SBA 504 for the cheapest fixed-rate financing on real estate.
Property Improvement Plan required by franchise. $200K–$3M. SBA 7(a) or 504 if combined with real estate refinance.
$2M–$15M acquisition. SBA 7(a) for under $5M; conventional CRE for larger.
Snow Bird markets (Florida, Arizona) and ski markets see dramatic seasonality. LOC if pre-approved; MCA if not.
Mattresses, furniture, soft goods, lobby refresh. $50K–$300K. Equipment financing.
Hurricane evacuation, road closure, regional event cancellation. MCA for emergency cash.
Beyond the standard credit + revenue + time-in-business thresholds, hospitality businesses face industry-specific underwriting variables.
SBA 504 is generally the cheapest for property purchases under $5M total deal size. The structure: 50% from a bank lender, 40% from an SBA-licensed CDC at fixed debenture rate (currently 7.5–9.5%), 10–15% buyer down payment. Total effective rate often 8–9.5%. For deals over $5M, conventional CRE financing competes more aggressively. For deals under $1.5M with fast close required, SBA 7(a) Express may be the right balance of speed and rate.
SBA 7(a): up to $5M total. SBA 504: effectively unlimited via stacking, with most deals $1M–$15M. Conventional CRE: up to 80% LTV typically, with deals from $1M to $50M+. The buyer down payment is typically 10–25% depending on program and property type.
Difficult. Most lenders want 12–18 months of post-disruption operating data for hospitality properties. Newly stabilizing properties (post-renovation, post-acquisition) may need to demonstrate 3–6 months of trending occupancy improvement before second-stage refinance. Pre-revenue hotel projects (new construction, major repositioning) typically fund through SBA 504 with strong sponsor capital, not conventional underwriting.
Yes — hotels and motels are SBA-eligible under both 7(a) and 504 programs. There are franchise-specific considerations: SBA evaluates the franchise system's SBA Franchise Directory listing and approves operators with active franchise agreements. Independent (non-franchised) properties qualify but may face additional scrutiny on revenue projections.
10–15% for SBA 7(a). 10–15% for SBA 504 (with 50% bank + 40% CDC structure). For larger or special-purpose properties, 20%+ down may be required. Compared to conventional CRE (typically 25–35% down), SBA structures are dramatically more accessible to first-time and smaller operators.
SBA 7(a): 60–90 days from application to funded for hotels (longer than typical 7(a) due to property-specific underwriting). SBA 504: 90–120 days due to dual-loan coordination. Conventional CRE: 45–90 days. Bridge loans (when speed matters): 14–30 days but at 9–13% APR.
Yes, with caveats. Smaller hospitality businesses (B&Bs, boutique inns, vacation rental portfolios) qualify for SBA 7(a) but face stricter occupancy and DSCR requirements than mid-sized hotels. Vacation rental portfolios specifically — unless you operate them as a single integrated business with employees and management — may be classified as passive real estate, which is SBA-ineligible. Active management and operating as a hospitality business is the dividing line.
Heavy package. Last 3 years of property financials (or P&L for new ownership). Last 3 years of borrower personal and business tax returns. STR Smith Travel data report. Property appraisal. Environmental assessment (Phase I, sometimes Phase II). Property condition assessment. Franchise agreement (if applicable). PIP analysis (if franchise-required). Personal financial statement. Pro-forma operating projections. Resume / hospitality experience documentation.
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