Hotel financing that underwrites
the operator —
not just the building.
Hotels are an operating business wrapped in real estate. We know the hospitality-active lenders who price by RevPAR, flag tier, operator track record, and PIP cycle — limited-service, full-service, boutique, motel: all placed.
Five structures for
hospitality assets.
Hospitality is operating-business-as-real-estate. We structure for the flag, operator track record, renovation cycle, and seasonal cashflow profile.
Limited-Service Acquisition
Hampton, Holiday Inn Express, Best Western, Comfort Inn, Days Inn. 50–65% LTV with A-bank or specialized hospitality lender — widest appetite and tightest pricing in the flagged hotel market.
Full-Service Acquisition
Marriott, Hilton, IHG flagged full-service. 50–60% LTV on a specialized lender list. Operator track record is as critical as the asset — lenders underwrite both simultaneously.
PIP / Renovation Financing
Property Improvement Plan capex mandated by your flag. We layer the PIP envelope directly into your mortgage or as a parallel facility — PIP funds held in escrow and disbursed against approved invoices.
Bridge / Reposition
Motel-to-boutique conversion, flag change, post-recovery stabilization. 50–65% LTV bridge structured with a clear refinance path into permanent debt once RevPAR normalizes.
From operator package
to funded — three months.
Hospitality underwriting is the most extensive commercial workflow we run. The right operator package makes all the difference.
Operator + asset intake
Operator track record, STR data, trailing-12 operating statement, flag agreement, and PIP schedule. We assess RevPAR, ADR, and occupancy trends to size the deal correctly before approaching a single lender.
Hospitality lender shortlist
3–4 hospitality-active lenders matched to your flag tier and operator profile. Indicative term sheets targeted within 10–15 business days. You see competing pricing before you commit to conditions.
Conditions and funding
Specialized hospitality appraisal, franchise comfort letter (if flagged), PIP envelope, environmental, and structural. Lawyer closes; PIP funds held by the lender and disbursed against approved invoices over 12–24 months.
Flag matters more
than market.
Tap any profile below to see how we approach it — and which lenders actively want your deal.
Asset typeFlagged limited-service — Hampton, Holiday Inn Express, Comfort Inn, Days Inn
Flagged limited-service — Hampton, Holiday Inn Express, Comfort Inn, Days Inn
Widest lender list and tightest pricing in hospitality. We map your flag's current PIP cycle into the structure from day one so there are no mid-term capital surprises from an unfunded renovation mandate.
Start my hotel fileAsset typeFull-service flagged — Marriott, Westin, Sheraton, DoubleTree, IHG
Full-service flagged — Marriott, Westin, Sheraton, DoubleTree, IHG
Specialized lender list required — generalist commercial desks routinely decline. Operator track record is critical. 50–60% LTV, wider spreads than limited-service, longer conditions timeline. We route the file correctly from the start.
Discuss my full-service dealAsset typeBoutique or independent hotel in a major Ontario market
Boutique or independent hotel in a major Ontario market
The lender list narrows sharply but the deal is workable with a strong STR positioning vs the competitive set. 3–4 specialist lenders actively pursue boutique hospitality at 50–55% LTV. We know which ones want your specific asset.
Explore boutique financingAsset typeMotel or roadside property with stable occupancy
Motel or roadside property with stable occupancy
Yes — with clean environmental and a credible operator. Motels finance at 50–60% LTV with pricing wider than flagged hotels. Motel-to-boutique conversions also work with a bridge-to-permanent-term structure.
Run my motel numbersAsset typeAcquisition requiring a PIP within 18–24 months of closing
Acquisition requiring a PIP within 18–24 months of closing
We structure the acquisition and PIP envelope as one facility — PIP funds held back and drawn against approved invoices. Eliminates the scramble for separate capex financing that often triggers flag-compliance review.
Structure my PIP dealAsset typeBridge financing for a conversion, flag change, or recovery story
Bridge financing for a conversion, flag change, or recovery story
Office-to-hotel, flag change, or post-RevPAR-collapse stabilization. 50–65% LTV bridge with a clear path into stabilized permanent debt once occupancy and ADR normalize to support the permanent mortgage payment.
Discuss my conversionHospitality needs a lender
who actually does hospitality.
Most generalist commercial banks decline hospitality or mis-price it. The lenders who price it competitively are a short, relationship-driven list.
| Capability | Our approach | Traditional bank |
|---|---|---|
| Lenders shopped | Hospitality-active specialists | 1 generalist (often declines) |
| RevPAR / ADR underwriting | STR data interpreted in-house | Generic DSCR only |
| Flag-aware pricing | Marriott vs Hilton vs IHG modelled separately | One blanket hotel policy |
| PIP envelope structuring | Layered into mortgage or parallel facility | Sponsor finds it elsewhere |
| Boutique / independent | Specialized lender relationships | Usually declined outright |
| Time to first quote | 10–15 days | 6–10 weeks |
| Operator track record | Pre-vetted with lender before submission | Submit-and-hope |
Common questions,
clear answers.
LTV ranges, PIP financing, lender access, franchise letters — answered plainly.
Why are hotels harder to finance than other commercial?
Hotels are an operating business — revenue depends on daily occupancy, ADR, and operator skill rather than long-term lease covenants. Most banks underwrite real estate, not operating businesses. The lenders who finance hospitality have specialized credit teams that understand the cyclicality and operator dependence, and we work with them.
What LTV can I get on a hotel?
Stabilized flagged limited-service: 55–65% LTV. Full-service flagged: 50–60% LTV. Independent boutique: 50–55% LTV. Motel/roadside: 50–60% LTV depending on operator and condition. Total leverage may be higher with a mezzanine or vendor take-back layer behind the first mortgage.
What's a PIP and how do I finance it?
Property Improvement Plan — flag-mandated renovation schedule (rooms, lobby, F&B, exterior). PIP costs vary by brand and building age, often $10k–$40k+ per key for limited-service and more for full-service on a 7–15 year cycle (industry estimates; your franchisor's PIP governs). We can layer the PIP envelope into your acquisition mortgage (held in escrow, drawn against approved invoices) or as a parallel facility post-closing.
Will lenders finance independent boutique hotels?
Yes — but the lender list narrows sharply. Boutique requires a strong operator track record, healthy STR positioning vs the comp set, and usually a lower LTV (50–55%). We work with 3–4 specialized lenders who actively pursue boutique hospitality.
What about motels — will lenders touch them?
Yes, with the right operator and clean environmental. Motels with stable cashflow and a credible operator can finance at 50–60% LTV. The pricing is wider than flagged hotels but the deal is workable, including motel-to-boutique conversions.
Do hospitality lenders require franchise comfort letters?
For flagged hotels yes — the franchisor (Marriott, Hilton, IHG, Choice, Best Western) issues a comfort letter to the lender confirming the franchise agreement is in good standing and outlining termination conditions. We coordinate this with the franchisor's lending desk early in conditions.
What's the typical hotel mortgage rate?
Illustrative broker estimates; reviewed October 2026 (not quotes): limited-service flagged, roughly 5-yr Government of Canada bond yield + 200–300 bps; full-service flagged, + 250–350 bps; boutique/independent, + 300–450 bps; bridge roughly 9–13%. Pricing depends heavily on operator strength and STR positioning.
What documents will I need?
Asset: T12, STR data, flag agreement, room mix, PIP schedule, current PIP completion status, capex history, franchise comfort letter. Sponsor/operator: hospitality CV, prior property list, banking, T2s, REO schedule, government ID. Plus appraisal (lender-ordered specialized hospitality appraiser).
We’ll try to beat your rate.
If we can’t, we pay you $500.¹
¹ Rate Beat: eligible Big-6 bank written offers only · same product, term & amount · $500 paid to you or your nominated charity at closing · conditions apply
Commercial mortgage specialists by city
Hotel and hospitality financing works on a national lender network — but local market dynamics, flag penetration, and comp-set RevPAR matter deeply to how a deal is positioned. Our advisors understand both the lender relationships and the Ontario hospitality markets your asset competes in.