Hotel loan rates vary widely because lenders underwrite both the real estate and the operating business. Franchise strength, trailing cash flow, revenue trends, property condition, PIP requirements, borrower experience, leverage, and loan structure all affect pricing.
Quick answer: There's no single hotel loan rate. Because a hotel is an operating business, pricing reflects its performance (occupancy, ADR, RevPAR), its brand and condition, and the loan structure — SBA, conventional, or bridge. The snapshot below shows the structures we quote; ask us for a current figure.
Why hotel rates differ from standard commercial mortgages
A hotel is an operating business with daily revenue rather than a traditional long-term rent roll. Underwriters examine occupancy, average daily rate (ADR), revenue per available room (RevPAR), franchise reports, management, seasonality, competitive supply, and required property improvements (a PIP).
SBA vs. conventional hotel pricing
SBA financing can reduce the equity burden and finance a combination of real estate, furniture, fixtures, equipment, goodwill, and working capital — but it requires SBA eligibility and documentation. Conventional financing may be more flexible for experienced operators with strong liquidity and a stabilized property. See our hotel financing program and SBA 7(a) loans.
Bridge financing for hotels
A hotel with a renovation plan, franchise conversion, PIP, weak trailing performance, or an urgent acquisition timeline may use a bridge loan first and refinance after the property reaches stabilized performance. Buying a hotel as a first-time operator? See how to finance buying a business.
Frequently asked questions
What affects a hotel loan rate most?
Cash flow, leverage, brand, market, property condition, operator experience, PIP requirements, and loan program.
Are SBA hotel rates lower than conventional rates?
Not automatically. SBA may offer lower equity requirements and longer amortization, while the actual rate and total cost depend on the deal.
Can I lock a hotel loan rate?
Some permanent programs allow a lock; bridge and variable-rate programs may not lock until later.
Are hotel renovation funds included?
They may be included in an SBA, bridge, or construction structure when supported by plans, budget, and underwriting.