Business funding for hotels and motels
Occupancy swings hard with the season and the local calendar, and a property PIP or a flagged brand's renovation requirement can be a bigger bill than owners expect. Hotel and motel funding usually comes down to renovations, furnishings and equipment, plus a bridge through the off-season.
- One application, several lenders
- No credit pull to see your options
- No fee to you, ever
Common funding needs
- Renovating rooms to meet a brand's property improvement plan
- Replacing HVAC units, elevators or laundry equipment
- Buying furniture, fixtures and equipment for a refresh
- Covering payroll and utilities through a slow off-season
What usually fits
Products that usually fit
- Term loan for a renovation or PIP compliance project.
- Equipment financing for HVAC, laundry and FF&E.
- Line of credit for the gap between seasons.
- Government-backed loans for a larger renovation, if the timeline allows for a longer approval process.
Compare term loans, lines of credit, cash advances and equipment financing side by side →
Illustrative example
A worked example
A motel needs $90,000 to replace HVAC units across the property and refresh room furnishings ahead of a busy season. With a 5-year term loan at an illustrative 10–25% APR, payments come to about $1,912–$2,642 per month, or $114,734–$158,497 in total.
Owners usually weigh that monthly payment against the higher nightly rate and occupancy the renovated rooms are expected to bring in before committing.
Illustrative example only, not an offer or a quote. Rates, fees and terms are set by each lender and depend on your business. Fees are not included unless stated.
Underwriting
What lenders look at
- Occupancy and revenue trends across the full season, not just peak months
- Franchise agreement and any pending PIP requirements
- Monthly deposits and existing debt on the property
- Age of major systems: HVAC, elevators, roof
- Owner credit and time owning the property
Honestly
Who this is not for
- A property with no operating history under current ownership
- A renovation budget that exceeds what higher occupancy can realistically repay
- Borrowing short-term, expensive money for work that will take years to pay for itself
If borrowing does not make sense, we will say so.
Are you a match?
Lender network minimums
Close but not quite there? Apply anyway and we will tell you honestly what is possible.
*Best available terms from lenders in our network. Every lender sets its own criteria; approval, amount and funding time are decided by the lender and not guaranteed.
| Time in business | 1 year+ |
|---|---|
| Monthly bank deposits | $20,000+ |
| Credit score | 500+ |
| Bank account | Business |
| Fee to you | $0 |
| Credit pull to start | None |
FAQ
Hotels & motels funding questions
Can I get funding to meet a brand's PIP deadline?
Often, yes, through a term loan or equipment financing, especially with the PIP document in hand showing what is required and by when.
Do lenders account for seasonal occupancy?
Yes, most look at a full year or more of deposits so the seasonal pattern is visible rather than judging the off-season alone.
Can independent, non-flagged motels get funding too?
Yes. Franchise agreements help show a standard to renovate to, but independent properties are funded on their own deposits and condition.
Is government-backed financing realistic for a hotel renovation?
Sometimes, if the timeline allows several weeks for approval. It is usually not the right fit for an urgent repair.
Guides
Guides for hotels & motels
Related
Similar businesses
Restaurants · Bars & pubs · Cafés & bakeries · Food trucks · Catering · Event venues
Where we work: all US states · all Canadian provinces
See your options
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