Lender | NerdWallet rating | Best For | Max loan amount | Min. time in business | Min. interest rate | Term length | Learn more |
---|---|---|---|---|---|---|---|
![]() | Read expert review | Best for purchasing a hotel | $5,000,000 | 24 months | 5% | 10 to 25 years | |
with Fundera by NerdWallet | Read expert review | Best for buying hotel equipment | $250,000 | 24 months | 6.5% | 12 months to 5 years | with Fundera by NerdWallet |
with Fundera by NerdWallet | Read expert review | Best for working capital needs | $250,000 | 12 months | 14% | Up to 6 months | with Fundera by NerdWallet |
with Fundera by NerdWallet | Read expert review | Best for hotel renovation or improvement | $5,000,000 | 24 months | 10.25% | Up to 25 years | with Fundera by NerdWallet |
with Fundera by NerdWallet | Read expert review | Best for bridge financing | $250,000 | 12 months | 31.3% | 18 to 24 months | with Fundera by NerdWallet |
best hotel financing options: More details
U.S. Small Business Administration: Best for purchasing a hotel
SBA 504 loans are designed specifically for the purchase of land and real estate — making them a good option for buying a hotel. In fact, 17.2% of SBA 504 loans awarded in fiscal year 2024 were issued to businesses in the accommodation industry.

SBA CDC/504 loan
Pros
- Low down payment required.
- Repayment terms of up to 25 years.
- Competitive interest rates.
Cons
- Must meet job creation or public policy goals to qualify.
- Longer processing times than online lenders.
Pros
- Low down payment required.
- Repayment terms of up to 25 years.
- Competitive interest rates.
Cons
- Must meet job creation or public policy goals to qualify.
- Longer processing times than online lenders.
Triton Capital: Best for buying hotel equipment
If you need to purchase ice machines, washers, bedroom sets, televisions or other related supplies for your hotel, consider dedicated equipment financing. Triton Capital can offer loans up to $250,000.
Triton Capital - Equipment financing
with Fundera by NerdWallet
Pros
- Can fund within one to two business days.
- No prepayment penalty.
- Flexible repayment options: monthly, quarterly, annually or semiannually.
Cons
- Charges an origination fee.
Pros
- Can fund within one to two business days.
- No prepayment penalty.
- Flexible repayment options: monthly, quarterly, annually or semiannually.
Cons
- Charges an origination fee.
with Fundera by NerdWallet
Bluevine: Best for working capital needs
A Bluevine line of credit can help you cover day-to-day expenses for your hotel, such as inventory purchases, payroll and utilities. You can draw from your credit line as needed and when you make repayments, the line automatically replenishes.
Bluevine - Line of credit
with Fundera by NerdWallet
Pros
- Cash can be available within 12 to 24 hours.
- Can be used to build business credit.
- Low minimum credit score requirement.
Cons
- Requires weekly payments.
- Not available in North Dakota, South Dakota or Nevada.
- Rates can be high compared with traditional lenders.
Pros
- Cash can be available within 12 to 24 hours.
- Can be used to build business credit.
- Low minimum credit score requirement.
Cons
- Requires weekly payments.
- Not available in North Dakota, South Dakota or Nevada.
- Rates can be high compared with traditional lenders.
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U.S. Small Business Administration: Best for hotel renovation or improvement
If you need to finance the different elements of an improvement or renovation project, consider an SBA 7(a) loan. These loans can be used for multiple purposes and offer large loan amounts.
SBA 7(a) loan
with Fundera by NerdWallet
Pros
- Large borrowing maximums.
- Interest rates are capped.
- Long repayment terms available.
Cons
- Collateral is typically required.
- Longer processing times than online lenders.
Pros
- Large borrowing maximums.
- Interest rates are capped.
- Long repayment terms available.
Cons
- Collateral is typically required.
- Longer processing times than online lenders.
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OnDeck: Best for bridge financing
OnDeck’s short-term loan can help you cover immediate financing needs for your hotel. With repayment terms up to 24 months, you may also use this loan to bridge the gap until you can access longer-term funding.
OnDeck - Online term loan
with Fundera by NerdWallet
Pros
- Cash can be available within the same business day (does not apply in California or Vermont).
- Accepts borrowers with a minimum credit score of 625.
- Streamlined application process with minimal documentation required.
- Can be used to build business credit.
Cons
- Cannot fund North Dakota-based businesses.
- Requires frequent (daily or weekly) repayments.
- Interest rates can be high compared with traditional lenders.
- Charges origination fee.
Pros
- Cash can be available within the same business day (does not apply in California or Vermont).
- Accepts borrowers with a minimum credit score of 625.
- Streamlined application process with minimal documentation required.
- Can be used to build business credit.
Cons
- Cannot fund North Dakota-based businesses.
- Requires frequent (daily or weekly) repayments.
- Interest rates can be high compared with traditional lenders.
- Charges origination fee.
with Fundera by NerdWallet
What is hotel financing?
- Purchase a hotel.
- Build a new hotel.
- Renovate or improve your property.
- Refinance an existing hotel loan.
- Cover day-to-day expenses.
- Purchase hotel equipment and machinery.
- Hire staff.
- Fund marketing or advertising campaigns.
Where to get hotel financing
Bank and SBA lenders
Alternative lenders
Direct hotel lenders
How to qualify for hotel financing
- Cash flow.
is the amount of money you have entering your business, minus the amount of money you have leaving your business at a specific moment in time. Positive cash flow can show that your business is financially healthy and able to pay back any potential debt.Cash flow - Debt service coverage ratio. The
(DSCR) compares your business’s cash flow to its potential debt obligations. To calculate DSCR, you’ll need to divide your annual net operating income by the potential annual debt payments you’d make for the hotel loan in question. Some lenders require a DSCR of 1.25 — a higher ratio is better — it means you have enough money coming in to pay your existing debts.debt service coverage ratio - Loan-to-value ratio. If you’re looking for a hotel loan to finance a purchase or construction project, the lender will calculate the loan-to-value ratio (LTV). This ratio is calculated by dividing the loan amount by the value of the property you are looking to buy or renovate.
will typically offer loan amounts with LTVs that range from 65% to 85%, depending on the type of property and your business’s qualifications, among other criteria.Commercial real estate lenders - Net operating income. Net operating income is your hotel revenue minus all necessary operating expenses. This number is calculated pre-tax and doesn’t account for any debt payments, capital expenditures or depreciation. Hotel lenders will use your net operating income to determine how efficiently your business runs.
- Revenue per available room. Revenue per available room, or RevPAR, is calculated by dividing the total room revenue by the rooms available. It can also be calculated by multiplying the average daily rate by the occupancy rate. In either case, this number represents the revenue generated per available room, whether or not they are occupied. Lenders may use this industry-specific metric to evaluate the success and growth of your hotel.
- Debt yield. Debt yield is your hotel’s net operating income divided by the potential loan amount. This number indicates the return a lender would see if they were to have to foreclose on your hotel from day one. Debt yield helps lenders assess the risk of issuing a loan to your business.
- Branding. Hotel lenders may consider the name of your hotel as they underwrite your loan application. If you’re operating under a well-established brand, the company’s reputation may make it easier for you to qualify for financing. Although small or boutique hotels may not benefit from brand reputation, those businesses can look for lenders that specialize in their part of the industry instead of those that typically work with larger brands.
Frequently asked questions
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Fill out one simple application
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If the lender approves you, you’ll sign closing documents in order to receive funds. Some lenders can approve and fund loans within one business day.