Written & reviewed by Stephen A. Sobin, President of Select Commercial Funding LLC
Property Type
Hotel & Motel Loans
Select Commercial specializes in hotel and motel financing nationwide from $1,500,000. Hospitality lending requires a lender that understands the sector, and we work with SBA, CMBS, bank and bridge lenders that actively finance flagged and independent hotels, with up to 90% financing for owner-operators. Compare today’s commercial mortgage rates.
Get a Free QuoteHotel Loan Rates & Terms
| Loan Type | Rate* | Max LTV |
|---|---|---|
| 5 Year Fixed | 6.75% | 65% |
| 7 Year Fixed | 6.75% | 65% |
| 10 Year Fixed | 6.75% | 65% |
- Loan amounts from $1,500,000, no maximum
- Flagged and independent hotels and motels
- Up to 90% financing available with SBA
- CMBS, bank and bridge options
- Acquisition, refinance, cash-out and repositioning
- Terms and amortizations up to 25 to 30 years
Rates are indicative and update with the market. Hotel underwriting reflects operations and flag.
Compare Your Hotel Loan Options
Hospitality is management-intensive, so we route each deal to lenders who understand hotels:
| Program | Typical rate* | Max leverage | Best for |
|---|---|---|---|
| SBA 504 / 7(a) | 6.03% | Up to 90% | Owner-operators, flagged and independent |
| CMBS / conduit | 6.67% | Up to 65-70% | Flagged hotels, non-recourse |
| Bank / portfolio | 6.75% | Up to 65% | Stabilized, relationship-based |
| Bridge | 9.00% | Up to 70% LTC | Repositioning and PIP |
Most conventional lenders avoid hotels because they are an operating business as much as real estate. Working with hospitality-focused lenders improves your terms and certainty of closing.
Hotel & Motel Properties We Finance
Select Commercial specializes in hotel loans and hotel financing. Hospitality lending requires a lender that understands the sector, and most conventional lenders lack that expertise. We finance:
- Flagged (franchised) and independent hotels and motels nationwide
- Acquisition, refinance and cash-out
- Repositioning and property improvement plan (PIP) financing
- Owner-operated hotels through SBA, with up to 90% financing available
Hotel Real Estate: 2026 Outlook
The lodging sector enters 2026 in a period of moderate growth, with demand outpacing new supply and a clear divide by hotel class.
Modest RevPAR gains. U.S. revenue per available room is forecast to grow in the low single digits in 2026, with demand growth running ahead of a limited supply pipeline, which supports a healthier balance for owners.
A performance divide by class. Trailing occupancy sits near 62.6% nationally, but luxury and upper-upscale hotels run around 67% and are expected to lead RevPAR growth, while economy and midscale properties near 54.5% occupancy see flatter pricing. The high-end and economy gap did begin to narrow as lower-priced hotels regained momentum.
Private capital is active. With institutional buyers cautious about near-term RevPAR volatility, private capital, family offices and specialized hospitality funds have stepped in, often acquiring at attractive bases. Forecast interest-rate cuts could reward early movers who secure assets at today’s higher cap rates.
A one-time tailwind. The 2026 World Cup, hosted across the U.S., Canada and Mexico, is expected to add a modest full-year lift to U.S. RevPAR, concentrated in host markets.
Why Finance Your Hotel With Select Commercial
With more than 30 years of experience and relationships across SBA, CMBS, bank and bridge lenders that actively finance hospitality, we place hotel loans that generalist lenders will not, and we compare every option for your property. There are no upfront application or processing fees, and we issue written pre-approvals within 48 hours at no cost or obligation.
What Our Clients Say
“I needed an SBA loan and found Select Commercial. It was obvious Stephen knew everything about commercial loans. If you are starting a small business, definitely give them a call.”
Larry S. · Washington, DC“I needed a business mortgage for my small business. Stephen helped me the entire way and was always accessible. I highly recommend them.”
Jonathan M. · Seattle, WA“As a real estate attorney, I trust that Select Commercial will deliver apartment building loans and commercial mortgages in a timely manner. The rates and terms offered are excellent. I heartily recommend them.”
David S. · New York City“Select Commercial was very helpful with my multifamily mortgage. Stephen went over several options and we came up with the best lender to meet my needs. I got the funds and also lowered my payments.”
Gary M. · Portland, ORGet Your Hotel Loan Quote
No cost, no obligation. Written answers within 48 hours on hotel and motel loans from $1,500,000.
- No application or processing fees
- Written answers within 48 hours
- For 5+ unit and commercial properties, $1.5M and up