7 Best Hotel Loans for 2023

Lendio, one of our best business loan brokers, has a network of over 75 lenders, making it a good choice if you want to have multiple loan options to choose from. With a large number of lending partners, you’ll have a better chance of landing an approval.

Another benefit is that after you apply, you’ll be paired with a funding specialist to discuss your business needs. This is done so that you can be matched with a loan best suited for your goals.

The provider offers different types of loans, including commercial mortgages, SBA 7(a), and SBA 504 loans. Depending on the loan you apply for, you could get rates as low as 5%. Other loan terms include loan amounts up to $5 million and repayment terms up to 25 years.

If you have bad credit, Lendio can be an option for you as it only requires a minimum credit score of 600. Other requirements include at least $96,000 in annual revenue and six months’ time in business. SBA loans have a higher requirement of two years’ time in business.

To learn more, you can visit Lendio’s website. There, you can begin the application process, which consists of a handful of basic questions. Once that is completed, you’ll be given additional instructions via an email or phone call to upload supporting documentation.

For hotel financing, we chose US Bank as the best conventional lender for CRE loans. Compared to the other providers on our list, it offers the best overall combination of low rates, long repayment terms, and large loan amounts.

Its loan offerings include commercial real estate mortgages, SBA 7(a) loans, and SBA 504 loans. To qualify, it’s recommended that you have a credit score of 700, at least two years’ time in business, and a DSCR of at least 1.25x. Although its SBA loans can have lower down payment requirements of 10%, you may be expected to have 20% or more depending on the lender’s overall evaluation of your loan application.

This provider is a preferred lender with the SBA. This means that it has the authority to issue SBA loan decisions on its own. In contrast, lenders that do not have this designation must obtain a separate approval, which can add several days or weeks to the process.

To start the application process, you’ll need to call or complete the lender’s online form for a callback.

Out of the providers in our guide that issue real estate financing, Kiavi’s loan amounts are on the smaller side. However, it offers competitive rates, flexible qualification requirements, and excellent customer service. For these reasons, we also selected it for our list of the best hard money lenders.

With Kiavi, you can get financing for up to $1.5 million with rates as low as 9%. Repayment terms can be as long as 24 months, making this better suited as a short-term bridge loan. This provider requires you to have a credit score of 660 and is able to work with new investors who have no prior investment experience.

As you gain more experience, you’ll get more benefits with Kiavi. Some examples include more competitive pricing and the ability to work with a dedicated account manager who can help facilitate faster funding speeds.

Another benefit of working with Kiavi is the fact that it’s possible to qualify with no income verification or property appraisal required. With fewer requirements, the lender can fund in as little as 10 days.

Avana Capital specializes in several areas, one of which is hospitality real estate. Combined with its competitive rates and fast funding speeds, it’s a good lender to consider for a short-term commercial bridge loan.

This provider’s bridge loan is commonly used to purchase or finance the renovation costs for a hotel. You can get up to $20 million or more in funding with repayment terms between 12 and 36 months, at which point it is expected that you’ll replace the loan with a more permanent source of financing.

Highly qualified businesses can get rates that start at around 7%. This provider does not disclose its minimum qualification requirements, but it’s recommended that you have a good credit score of at least 680, three years’ time in business, and a DSCR of 1.4x. You’ll also need a down payment of at least 25%, calculated using the as-complete value of the building.

Other products offered by Avana Capital include SBA 504 loans and construction loans. It also has financing for businesses in the cannabis industry.

Applications cannot be completed online. However, you can complete an online request for a return phone call.

TMC Financing is highly experienced with SBA 504 financing and hotel loans, making it a good choice if you want a knowledgeable lending partner. Additionally, while many SBA 504 lenders only issue loans up to the typical SBA-insured amount of $5 million, this provider offers financing of $25 million and up.

Rates start at around 6.5%. To be considered for hotel financing, you’ll need a down payment of at least 15%, two years’ time in business, and a DSCR of 1.25x. The provider does not disclose credit score requirements, so it’s a good idea to check your eligibility immediately after applying.

Eligible businesses include both independent and franchised hotels. If approved for a loan, funds can be used for the purchase, construction, and expansion of the building. You can also use it to cover expenses for equipment and furnishings.

TMC Financing gives you the option to apply online, and you can start this process even before you find a building to purchase. Completed applications are reviewed by the lender, after which a prequalification can be issued within 18 to 48 hours. This prequalification can serve as additional confirmation of your loan eligibility and give you an advantage when it comes to making an offer on a property.

Smarter Finance tops our list of the best equipment financing companies. It is a broker with over 37 lenders in its network, and unlike other brokers, it specializes in equipment financing options to improve your chances of getting approved. It offers loans and leases for a variety of equipment, including vehicles, heavy equipment, and construction.

Its team also has the necessary experience to present your business in the best possible way to secure competitive rates and loan terms. Plus, Smarter Finance has some of the most flexible repayment terms out of all the providers in our guide, with options for weekly, monthly, seasonal, and deferred.

Applications are reviewed on a case-by-case basis, and there are no minimum requirements for time in business or revenue. The same is true for your credit score, but it’s recommended that you have at least a 600 to make it more likely to get approved. Applications can be completed online in just several minutes, with funding that can occur within one to four business days.

With Bluevine, which tops our list of the best small business lines of credit, you can get a small business line of credit that allows you to get funds on an as-needed basis. This can help cover things like unexpected emergencies or temporary shortages of cash flow.

This provider offers loan amounts up to $250,000. Rates start at 6.2% for well-qualified businesses, with weekly payments of up to 12 months. Businesses must have a minimum credit score of 625, two years’ time in business, and $40,000 in monthly revenue to be eligible for financing.

One thing to note is that if you do not want to make weekly payments, you do have the option to make monthly payments if you meet additional requirements. You must have a higher credit score of 650, monthly revenue of $80,000, three years’ time in business, and no bankruptcies within the past three years.

Loans are available in most states. Exceptions to this include North Dakota, South Dakota, Nevada, Puerto Rico, and the United States territories. To apply, you can visit the Bluevine website and get a decision in as fast as 5 minutes.