Complete Guide to Hotel and Hospitality Loans
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Editor’s note: Lantern by SoFi seeks to provide content that is objective, independent and accurate. Writers are separate from our business operation and do not receive direct compensation from advertisers or partners. Read more about our Editorial Guidelines and How We Make Money.
What Are Motel and Hotel Loans?
How Do Hotel Loans Work?
Times When a Hotel Loan Can Be a Good Idea
The purchase of an existing hotel property New construction Refinancing an existing hotel loan Funding operational expenses Relocating Remodeling Hiring additional staff Purchasing new hospitality equipment Getting hotel bridge financing until permanent financing becomes available Positioning the property for profitability Stabilizing a distressed property
Common Types of Loans for Hotels
Hotel Construction Loans
Hard Money Loans for Hotels
Hotel Bridge Loans
Conventional Loans
Permanent Loans
Preferred Equity
Mezzanine
Fully Amortized
Acquisition Loans
SBA Loans for Hotels
SBA 7(a)
SBA 504/CDC
Pros and Cons of SBA Loans
Pros and Cons of Hotel Loans
Getting a Hotel Loan
Finding Out How Much of a Loan and What Kind You Need
Gathering Important Documents
Driver’s license Three years of tax returns Most recent mortgage statement for any real estate owned Bank statements Life insurance if there is a cash surrender value IRA/401(k) information
Hotel specifications Number of rooms Amount of floors Number of buildings on property Year built Square footage Building acreage Last mortgage statement Profit and loss balance sheet Three years of tax returns Most recent quality inspection report Latest property improvement plan Copy of all business contracts Capital expenditure Survey report Most recent appraisal Customer occupancy rate
Comparing Lenders and Rates
Applying
Comparing Hotel Loan Rates with Lantern
Frequently Asked Questions
About the Author
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