City Spotlight- Nashville: Beyond the Bachelorette
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Debt and equity solutions for hotels, resorts, and extended-stay properties across all flags
Hospitality financing requires specialized expertise due to the operating nature of hotels and their sensitivity to economic cycles, travel trends, and competitive dynamics. George Smith Partners has deep experience in hotel finance, understanding the unique underwriting considerations and lender preferences that drive hospitality capital markets.
From select-service acquisitions to luxury resort developments, our team connects hotel owners and developers with lenders who understand the hospitality business and can structure financing that aligns with operating realities and business plans.
Convention hotels, urban full-service, and branded lifestyle properties with extensive F&B and meeting space.
Focused-service properties with limited F&B, including brands like Marriott Courtyard, Hilton Garden Inn, and Hampton.
All-suite properties designed for longer stays with kitchenettes, including Residence Inn, Homewood Suites, and Staybridge.
Destination properties in leisure markets with extensive amenities, often including golf, spa, and beach access.
Unique independent properties and soft-branded boutique hotels in urban and resort markets.
Budget-friendly properties serving value-conscious travelers, including brands like Holiday Inn Express and La Quinta.
Hotel lenders focus on these key factors when evaluating hospitality financing:
Historical and projected revenue per available room relative to competitive set.
Strength of franchise affiliation and quality of operating management.
Supply/demand balance, demand generators, and competitive positioning.
Track record of the owner/operator in hospitality investment and operations.
Property improvement plan costs and timing for brand compliance.
Adequate reserves for furniture, fixtures, and equipment replacement.
Regional and national banks providing acquisition, construction, and refinancing for qualified sponsors and markets.
Securitized loans for stabilized hotels with predictable cash flows and strong brand affiliations.
Bridge and construction financing for transitional situations and value-add repositioning.
SBA 504 and 7(a) loans for smaller hotels with owner-operator involvement.
Hotels are operating businesses with nightly revenue that fluctuates with economic cycles, travel trends, and seasonal demand. Lenders underwrite hotels based on RevPAR performance, brand strength, management quality, and market dynamics rather than long-term lease contracts, which makes hospitality financing more specialized than other property types.
We arrange financing for all hospitality segments including full-service convention hotels, select-service properties, extended-stay hotels, luxury resorts, boutique and independent hotels, and economy lodging. Our experience spans flagged and independent properties across urban, suburban, and resort markets nationwide.
Yes. Many hotel lenders will fund PIP and renovation costs through structured reserves or future-funded holdbacks as part of an acquisition or refinancing loan. Bridge lenders and debt funds are particularly well-suited for transitional hotel situations that involve significant capital improvements alongside ongoing operations.
Hotel acquisition loans typically range from 55% to 70% loan-to-value depending on the property type, flag, and market. Banks and CMBS lenders offer permanent financing for stabilized hotels, while debt funds provide bridge capital for value-add situations. SBA 504 loans are also available for owner-operated hotels with favorable terms.
Our team can help you secure debt and equity financing for your hospitality investment.
Discuss Your Hotel Financing