Written & reviewed by Stephen A. Sobin, President of Select Commercial Funding LLC
Hospitality
Motel Loans
Select Commercial arranges motel financing for independent and franchised properties, purchase, refinance and cash-out. Motels are financed as hospitality assets, underwritten to the property’s revenue, occupancy and operating history, from $1,500,000.
Get a Free QuoteMotel Loan Rates & Terms
Rates updated as of August 23, 2026
| Loan Type | Rate* | Max LTV |
|---|---|---|
| Starting Rate | 6.75% | 90% |
- Loan amounts from $1,500,000, no maximum
- Flagged and independent motels and lodging
- 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 last updated August 23, 2026. Rates and maximum LTV shown represent our best-case pricing scenarios. Actual rates, LTV, and loan terms are subject to underwriting approval and may vary.
Compare Your Motel Loan Options
| Program | Typical rate* | Max leverage | Best for |
|---|---|---|---|
| SBA 504 | 6.03% | Up to 90% | Real estate for flagged and independent motels |
| SBA 7(a) | 6.75% | Up to 90% | Owner-operators, acquisition and working capital |
| CMBS / conduit | 6.66% | Up to 65-70% | Flagged motels, non-recourse |
| Bank / portfolio | 6.75% | Up to 65% | Stabilized, relationship-based |
| Bridge | 9.00% | Up to 70% LTC | Repositioning and PIP |
Rates last updated August 23, 2026. Rates and maximum LTV shown represent our best-case pricing scenarios. Actual rates, LTV, and loan terms are subject to underwriting approval and may vary.
Financing Motels and Independent Lodging
Motels are cash-flow businesses as much as real estate, so lenders underwrite occupancy, average daily rate and net operating income alongside the physical property. Franchised and well-located independent motels with a solid operating history earn the best terms. We match each deal to bank, SBA (for owner-operators), CMBS or bridge capital depending on the property and business plan.
What Our Motel Program Covers
- Flagged, branded and independent non-flagged motels, in urban, suburban and vacation areas
- Seasonal properties in vacation markets, which many lenders will not consider
- Property improvement financing for furniture, fixtures and equipment (FF&E)
- Re-branding and flag-switch financing when a franchise change requires upgrades
- Acquisition, refinance and cash-out from $1,500,000
Motels in 2026: The Numbers
Budget-friendly lodging holds a steady niche in 2026. Current industry data shows:
- National occupancy near 62% forecast for 2026 with RevPAR up about 0.6% to 0.9% (forecasts updated January 2026), and the performance gap between economy and higher-end lodging has begun to narrow.
- Demand for affordable travel stays durable, with domestic road-trip travel supporting motels along major routes and in vacation markets.
- A heavy refinancing calendar: about 30% of lodging mortgage balances mature in 2026, the highest of any property type (Mortgage Bankers Association, 2025 survey), so owners with maturing debt should start early.
- A 2026 World Cup tailwind is expected in host metros and surrounding drive-to markets from June to July 2026.
We finance motels nationwide, including Florida, Texas, California, Arizona and Tennessee, and in drive-to and tourism metros such as Orlando, Las Vegas, San Diego, Savannah and Memphis.
Financing Options in Commercial
Commercial apartment, multifamily and commercial properties each have dedicated financing. Pick the page that matches your property:
Financing in another state? Explore our apartment loans, multifamily loans and commercial mortgages nationwide.
What Our Clients Say
“As a real estate attorney, I trust that Select Commercial will deliver commercial mortgages in a timely manner. My clients are always handled professionally, and the rates and terms are excellent. I heartily recommend them.”
David S. · New York City“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“Select Commercial was very helpful with my commercial mortgage. I needed to increase cash flow due to maintenance on my property. Stephen went over several options and got me the funds while lowering my payments.”
Gary M. · Portland, OR“Select Commercial offered 100% financing for my medical practice when my bank would have required 20% down. They delivered something my bank could not, and handled everything professionally.”
John C. · Boston, MAGet a Free Quote
No cost, no obligation. Written answers within 48 hours on 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