How Hotel Financing Works
An overview of hotel financing structures, lender types, and the brokerage process for Texas hospitality sponsors.
Hotel financing differs from other commercial real estate because lenders underwrite operating performance through STR data — occupancy, ADR, and RevPAR — rather than traditional lease income. Understanding this distinction helps sponsors prepare stronger packages.
As a broker/advisor, Midas Financials helps match your deal to lenders with hotel appetite. We do not lend directly, and all financing is subject to lender approval.
Common Hotel Loan Types
Hotel sponsors typically encounter several financing structures:
- Conventional permanent loans for stabilized assets
- SBA 504/7(a) for qualifying owner-operators
- Bridge loans for acquisitions and value-add
- Construction/PIP financing for renovations
- CMBS for larger stabilized portfolios
The Brokerage Process
Midas reviews your deal, identifies lender fit, helps prepare the underwriting package, and coordinates through term sheet, due diligence, and closing. Timeline and terms depend on lender, asset, and sponsor profile.