Hotel loan packages and lender matching
Hotels re-lease every room every night. Lenders treat that as operating-business risk, and fewer of them play. The ones that do want to see performance against the competitive set, the brand situation, and what capital the property needs.
What lenders scrutinize on hospitality.
Operating history
Occupancy, ADR and RevPAR over time, and against the competitive set.
Flag and franchise
Brand, franchise agreement term, and any property improvement plan the brand requires.
Management
Who operates the hotel and their track record with similar properties.
Capital needs
PIP cost, FF&E reserves and deferred maintenance.
Demand drivers
What brings guests to the market: business, leisure, groups, events.
What goes in the package
- Trailing operating statements by month
- STR or competitive set reports where available
- Franchise agreement and any PIP
- Management agreement
- Capital expenditure history and budget
- Appraisal
- Sponsor and operator track record
- Property photos
Metrics lenders size on
| DSCR | Often 1.40x–1.60xVaries by lender, loan program and market. |
| LTV | Often 55%–65%Varies by lender, loan program and market. |
| Debt yield | Often 10%–13%Varies by lender, loan program and market. |
Illustrative ranges, not a quote or a commitment from any lender.
Questions
Why are hotel loans harder to place?
Revenue resets daily, so lenders underwrite operating risk as well as real estate risk. Fewer lenders finance hospitality, which makes matching to the right box more important.
Does Dori support hotel deals?
Yes. Hospitality is a supported property type.
What is a PIP and why does it matter?
A property improvement plan is the brand's list of required upgrades. Lenders want to know its cost and how it will be funded.
One closed deal covers the year.
Start on the introductory rate and see a package come out of a real deal this week.