Hospitality Bridge Loans: Hotel Bridge Financing for Acquisitions, Refi, PIP

Hospitality Bridge Loans | Hotel Bridge Financing for Acquisitions, Refi, PIP

Hospitality Bridge Loans

We structure and underwrite hotel bridge financing for acquisitions, refinance, PIP renovations, reflags, and construction takeouts. Senior bridge debt, mezzanine, and preferred equity with clear covenants, reserves, and a tight closing plan. Full KYC, AML, and sanctions screening on every mandate.

What We Finance

Acquisitions
Time sensitive hotel buys, portfolio carve outs, and off market opportunities with franchise approvals in flight.
Refinance
Maturity walls, rate resets, partner buyouts, and cash out for capex or PIP escrow.
PIP and Reflag
Brand transfers, key money structures, FF&E and soft costs with verified bids and milestones.
Construction Takeout
Stabilization bridges after C.O., ramp to agency or life co perm, burn off guarantees with tested DSCR.

Target Property Types

Select Service
Flagged assets with stable RevPAR and clear PIP scope.
Limited Service
Strong highway and suburban locations with steady ADR and occupancy.
Extended Stay
Corporate mix, weekly length of stay, and cost controls that support margins.
Lifestyle and Boutique
Urban and resort concepts with compelling comps and sponsor track record.
Resort
Seasonal ADR swings managed with reserves and dynamic pricing plans.

Capital Stack We Arrange

Senior Bridge
First lien, interest only, with TI, PIP, interest, and tax reserves sized to the plan.
Mezzanine
Second lien or unsecured with tested intercreditor terms to close equity gaps.
Preferred Equity
Structured distributions and control rights that sit outside the mortgage.

What Improves Approval

Brand and PIP Clarity
Executed franchise docs, approved PIP scope, vendor quotes, and realistic timelines.
Operating Plan
Manager credentials, labor model, channel mix, and revenue management strategy tied to comps.
KPIs and Exit
RevPAR, ADR, occupancy targets with a clear path to perm debt or sale inside term.
Clean Controls
Cash management, FF&E reserve, PIP draws, KPI reporting, and covenant tracking.

Typical Terms

  • LTV. Up to 65 percent of as is value. Up to 70 percent on strong flags and markets.
  • LTC. Up to 75 to 80 percent with verified PIP and contingency.
  • Loan size. USD 5 million to USD 150 million. Larger on a club basis.
  • Tenor. 12 to 36 months with extensions tied to milestones.
  • Pricing. Floating rate with spread set by DSCR, leverage, and ramp risk.
  • Covenants. Minimum DSCR, liquidity floor, monthly KPI reporting, budget variance limits.

Process

1

Screen and Structure

We assess story, collateral, brand status, PIP scope, and exit. We map the capital stack, controls, and timeline to close.

2

Underwrite and Term Sheet

We price with lenders and private credit funds, align intercreditor terms, and issue a term sheet with conditions precedent.

3

Documentation and Close

We finalize loan documents, security, reserves, draw schedules, and reporting. Funds flow and post close milestones are set.

What To Send For Pricing

Financials
Trailing 24 months P&L, T 12, T 3, STR or comp set, balance sheet, and tax returns.
Asset and Brand
Franchise status, PIP scope and bids, photos, leases, management agreement, and ADR or RevPAR history.
Sponsor
Bio, track record, REO, org chart, GC details, and manager credentials.

Request A Hospitality Bridge Term Sheet

Share the address, keys, franchise status, PIP scope, loan amount, uses of proceeds, and target closing date. We will revert with lender route, pricing, and a checklist.

Start Your Funding Mandate

Financely is an arranger and underwriter. We are not a direct lender. Engagements are best efforts and subject to due diligence, KYC and AML, sanctions screening, and approval by lending partners. Nothing here is a commitment to lend or to buy securities.

Frequently Asked Questions

How much sponsor equity is typical for hospitality bridge loans?
Plan for 15 to 30 percent of total uses based on leverage and ramp risk. Mezzanine or preferred equity can narrow the cash ask when coverage is strong.
Can interest and PIP costs be reserved to protect DSCR during ramp?
Yes. We size interest, taxes, insurance, FF&E, and PIP reserves to match the plan. Draws are tied to milestones and vendor certifications.
Will lenders close before franchise approval or license transfer?
Often yes with conditional close and escrow. We set clear deliverables for final brand approval, license transfer, and PIP commencement.
Do you arrange bridge to HUD, agency, bank, or life company takeout?
Yes. We set takeout standards and a marketing timeline so the exit clears the stack within term, with extensions tied to milestones.
How fast can a hospitality bridge loan close?
Three to six weeks after a clean file and third party reports. Add time for complex title issues, brand conditions, or large PIP scopes.

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.

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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.

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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.