Capital Raising Advisors For Hotel Acquisitions In The USA

Capital Raising Advisors For Hotel Acquisitions In The USA

Capital Raising Advisors For Hotel Acquisitions In The USA

Hotel acquisitions clear when underwriting is credible, documents are complete, and the capital stack fits brand and market risk. We arrange senior debt, bridge financing, Commercial Mortgage Backed Securities, mezzanine capital, preferred equity, and co-general partner capital. Our team runs underwriting, lender coverage, term sheet comparison, and documentation to a funded closing.
Who We Serve
Sponsors and operators acquiring select-service, limited-service, extended stay, full-service urban assets, resorts, and portfolios across the United States.
Typical Triggers
Brand change and Property Improvement Plan, management transition, recapitalisation, distress-to-stabilisation plans, and value-add through revenue management and cost controls.
Objectives
Proceeds that match the business plan, covenants that the operating team can meet, and a closing date that aligns with franchise and seller timelines.

Financing Solutions We Arrange

Senior Debt
  • Acquisition loans sized to Debt Service Coverage Ratio and in-place cash flow.
  • Commercial bank, life company, or Commercial Mortgage Backed Securities where scale and stability allow.
  • Rate protection and cash management aligned with seasonality.
Bridge Loans
  • For repositioning, brand conversion, or Property Improvement Plan execution.
  • Interest reserve sized to the renovation schedule and ramp assumptions.
  • Exit tested against takeout debt metrics and forecast trailing results.
Mezzanine Capital
  • Proceeds above senior limits with a fixed coupon and negotiated intercreditor.
  • Security typically at the property ownership entity or a pledge of interests.
Preferred Equity And Co-GP Capital
  • Priority distributions and cure rights where early cash is constrained.
  • Co-general partner capital for deposits, pre-development, and working capital, with clear promote and governance.
Small Business Administration Options
  • Small Business Administration 7(a) and 504 for owner-operators and smaller flags where eligibility is met.
  • Franchise approvals and operating history reviewed against program rules.
PIP And Capex Financing
  • Dedicated facilities or holdbacks for Property Improvement Plan, furniture fixtures and equipment, and systems.
  • Draw mechanics tied to milestones and brand sign-offs.

Proceeds, Pricing, And Underwriting Markers

Ranges below are indicative. Final terms depend on brand, location, seasonality, Revenue per Available Room, Average Daily Rate, occupancy, sponsor record, and timing. We benchmark against current lender appetite before third-party reports begin.

Asset Senior Proceeds Bridge Proceeds Typical Pricing Bands
Select-Service / Limited-Service 55% to 65% Loan to Value with 1.35x+ coverage 60% to 70% of total cost Senior: base plus 250 to 500 bps. Bridge: base plus 500 to 900 bps with fees.
Extended Stay 55% to 65% Loan to Value with 1.35x+ coverage 60% to 70% of total cost Senior: base plus 225 to 450 bps. Bridge: base plus 450 to 800 bps.
Full-Service Urban 50% to 60% Loan to Value with 1.40x+ coverage 55% to 65% of total cost Senior: base plus 300 to 600 bps. Bridge: base plus 600 to 1000 bps.
Resort 45% to 55% Loan to Value with higher coverage thresholds 50% to 60% of total cost Senior: base plus 350 to 700 bps. Bridge: base plus 700 to 1100 bps.
Mezzanine Capital
Coupon guideline: base plus 800 to 1200 bps with fees. Proceeds lift: 5% to 15% of capital stack. Intercreditor terms agreed with senior at term sheet stage.
Preferred Equity
Target yield often low to high teens by risk. Blend of current and paid-in-kind. Consent list aligned with senior loan covenants.
Commercial Mortgage Backed Securities
For stable or near-stable assets with scale. Focus on cash management, reserves, brand compliance, and defeasance or yield maintenance.

Underwriting Focus For Hotel Acquisitions

  • Brand, flag change plan, franchise approval timeline, and management agreement terms.
  • Market depth, competitor set, Average Daily Rate, occupancy, and Revenue per Available Room trends.
  • Seasonality, group versus transient mix, and channel costs.
  • Property Improvement Plan scope, budget, contractor readiness, and return on investment logic.
  • Sponsor track record, guaranty capacity, and reporting cadence.

Our Process From Mandate To Funding

  1. Screening. Proceeds and pricing benchmarked against current appetite by asset type and market.
  2. Underwriting File. Five-year model, sources and uses, capital plan, franchise status, management terms, and sensitivity tables.
  3. Distribution. Targeted outreach to banks, Commercial Mortgage Backed Securities desks, private credit, and equity partners matched to the plan.
  4. Term Sheets And Negotiation. Comparable options for clean files, fee discipline, and covenants the operating team can meet.
  5. Diligence And Documents. Appraisal, environmental, property condition, franchise and management approvals, and intercreditor where applicable.
  6. Closing And Draw. Conditions precedent, reserves, account control, and first funding. We stay on through the first reporting cycle.

Documents And Data That Speed Approval

Core Items
  • Purchase and sale agreement with key dates.
  • Trailing twelve months financials, daily pickup reports, and channel mix.
  • Brand status, franchise application, or transfer approvals in process.
  • Management agreement terms, key performance indicators, and termination rights.
Third-Party Reports
  • Appraisal, environmental, property condition assessment, zoning and title.
  • Property Improvement Plan scope and bids, construction schedule if any.
  • Insurance program and evidence of compliance with brand standards.

Illustrative Scenarios

Select-Service Conversion
Bridge loan with interest reserve, dedicated Property Improvement Plan facility, preferred equity to close the gap, and a clear takeout once trailing metrics meet coverage.
Extended Stay Roll-Up
Senior term debt sized to predictable occupancy, small mezzanine slice for proceeds, and program-level governance across the portfolio.
Resort Acquisition
Lower leverage senior with strong reserves, equity co-investor to balance seasonality, and revenue management plan tied to lender reporting.

Frequently Asked Questions

What leverage is realistic for hotel acquisitions today
Select-service and extended stay often clear at higher Loan to Value than full-service and resort assets. Coverage tests and trailing performance drive the ceiling.
Can Property Improvement Plan be financed
Yes. Lenders allocate dedicated reserves or a separate facility. Draws follow milestones and brand approvals.
How long from term sheet to funding
Thirty to sixty days for straightforward acquisitions with completed reports and franchise steps on track. Complex repositioning takes longer due to Property Improvement Plan and construction readiness.

Request Capital Raising Support For A Hotel Acquisition

Share the purchase agreement, brand status, trailing performance, and the business plan. We will respond with proceeds, likely pricing, and a route to close.

Start Your Real Estate Financing Process

Figures are indicative. Any mandate and funding are subject to due diligence, know-your-customer checks, sanctions screening, credit approval, third-party reports, and final documentation. Nothing here is a commitment to lend or invest.

Get Started With Us

Submit Your Deal & Receive a Proposal Within 1-3 Working Days

Submit your deal using our secure intake form, and receive a quote within 1-3 business days. Existing clients can connect with their relationship manager through our secure web portal.


All submissions are promptly reviewed, and all communications are conducted through the intake form or the client portal for a seamless and secure process.

Express Application Submit Your Deal
Request a Proposal
Request a Proposal / Submit a Deal

Thank you for considering working with us. A nominal fee of US$500 is required upon completion of each form. This fee covers the time and effort we invest in reviewing your submission and crafting a thorough proposal. We receive numerous inquiries and prioritize those that carry this fee, ensuring serious applicants receive prompt attention.

Trade Finance

Tap into solutions like letters of credit, bank guarantees, and payment facilitation. We address the challenge of global transaction risk through structured strategies that foster cross-border growth. Complete the form to unlock streamlined funding aligned with your commercial objectives.

Submit a Request

Project Finance

Access non-recourse funding for infrastructure, renewable energy, or other capital-intensive ventures. We mitigate capital constraints by isolating project assets and focusing on risk management. Provide your details to receive a structure that drives growth and maximizes returns.

Submit a Request

Acquisitions

Secure financing for business or real estate acquisitions. We ease transaction hurdles by reviewing cash flow, synergy opportunities, and exit plans. Complete the form for a customized proposal that supports your strategic investment objectives.

Submit a Request

For Banks

Financely assists banks facing Basel III pressures by distributing trade finance deals and providing collateral for letters of credit. We reduce capital burdens while preserving client relationships and fostering service expansion. Submit your request to optimize your trade finance offerings.

Submit a Request

Once we receive your submission, our team will review your information to determine feasibility. If eligible, you will receive a proposal or term sheet within 1–3 business days. Visit our FAQ and Procedure pages for more information.

Disclaimer: Financely provides financing based on due diligence and feasibility. Approval is not guaranteed, and past performance does not predict future outcomes. All terms are subject to review. Financely primarily assists with structuring and distribution. Qualified parties carry out the project if the client approves the proposal.

Still Have Questions? Schedule a Consultation

If you still have questions after visiting our FAQ and Procedure pages, we invite you to book a paid consultation for personalized guidance. A $250 USD fee applies per session.