Select Commercial specializes in hotel loans and hotel financing. Hospitality lending requires a lender that really understands and specializes in lending to hotel owners. Most conventional lenders do not have this particular expertise and reject hotel mortgage requests. Select Commercial has a special expertise in providing hotel loans. We will finance the purchase or refinance of large full service hotels, smaller limited service hotels and extended stay properties. We will provide acquisition financing, refinances, and even property improvement loans in order to finance furniture, fixtures and equipment (FF+E). We will finance property improvements in order to allow a hotel owner to “re-brand” or “switch flags”. We finance hotels located in urban, suburban and vacation areas. We will consider loans on seasonal properties, as well. Many other lenders will not consider seasonal hotels in vacation area locations. Let us help you purchase, refinance or improve your hotel with hotel financing from Select Commercial’s hotel division! Our minimum loan size is $1,500,000.
Our Commercial Real Estate Loan Benefits
Hotel Mortgage rates start as low as 5.80% (as of May 29th, 2023)
• A commercial mortgage broker with over 30 years of lending experience
• No upfront application or processing fees
• Simplified application process
• Up to 90% financing available
• Terms and amortizations up to 25 years
• Loans for purchase and refinance, including cash-out
• 24 hour written pre-approvals with no cost and no obligation
Recent TRUSTPILOT Reviews
Select Commercial Funding Reviews from TRUSTPILOT
A three year journey
"Thanks Stephen for all of your hard work in getting our deal closed! I appreciate your professionalism and patience throughout a complicated process. You always were there for my partner and I whenever we had questions and needed answers quick. It was a pleasure to have worked with you and Select Commercial!"
Hotel Loan Outlook for 2021 - Commercial Mortgage Rates
The COVID-19 pandemic seriously depressed the demand for apartment living space across the Unites States. One of the biggest factors that directly impacts apartment demand and household formation is a given market’s availability of jobs. The pandemic caused many people to be out of work and many other people to work remotely. Consequently, many prospective tenants such as new graduates lived with their parents or friends. With increased hiring in 2021 and many people returning to their in-office jobs, there has been a big rise in the demand for nationwide apartment housing. As more and more young graduates can return to work, this trend should continue throughout 2021. Commercial mortgage rates for apartment buildings have been at all-time lows throughout 2021 and experts don’t anticipate them to go up soon. The office and retail sectors did not fare so well in 2020 due to the pandemic. Many businesses shut down, brick and mortar retail shops had a hard time doing business and many companies implemented work from home policies. Many lenders were very conservative when considering commercial mortgage applications for these sectors. With vaccinations increasing and many states removing restrictions, business profitability has risen throughout 2021. In 2021, we are seeing companies hiring again after a dismal 2020. During 2021, it is estimated that more than 6.5 million workers will be added to company payrolls, many of them needing office space. Commercial mortgage lenders are not extremely bullish on the office sector and commercial mortgage rates, while attractive, are not as low as some other asset classes. Meanwhile, we are not seeing commercial mortgage lenders lend aggressively on retail properties in 2021. While the loans that lenders do fund may be at lower commercial mortgage rates, they aren’t as low as other asset classes and borrowers are having a difficult time obtaining high leverage loans in 2021.
Industrial properties are emerging well positioned from the pandemic and are expected to perform well in 2021 and beyond. The rapid growth of e-commerce, especially during the pandemic, is causing strong demand for industrial and warehouse space. 2021 has been a strong year for industrial absorption and sales prices of suitable industrial space has skyrocketed. Industrial properties currently are receiving very attractive commercial mortgage rates as this market is receiving a lot of attention. Experts believe that close to $578 billion of commercial mortgages and multifamily loans will be funded in 2021. This is over a 30% increase from 2020’s volume of $442 billion. As commercial mortgage rates remain at all-time lows, 2021 is a great time for prospective borrowers to look for commercial mortgage loans. Right now in 2021, commercial mortgage rates can be in the high 2% range for qualified properties and borrowers. Apartment loans above $6 million can qualify for rates in the mid- high 2% range while apartment loans below $6 million are generally being underwritten in 2021 in the low to mid 3% range. Many lenders are financing commercial mortgage loans for other asset types in the low to mid 3% range as well in 2021. Check out our low commercial real estate loan rates and use our commercial mortgage calculator to calculate monthly principal and interest.
The coronavirus pandemic caused major disruptions in financing for many single use properties, including hotel loans. Many locations were forced to close and remain closed for many months. Other properties were able to survive by operating outdoors or by offering pickup and delivery services. Financing for hotel loans in 2021 is available for those businesses that were able to survive the pandemic, remain in business, and demonstrate a path to profitability post pandemic. Lenders in 2021 want to offer hotel loans for those businesses that are deemed good credit risks and are able to make their payments. Hotel loans for businesses that have not returned to profitability in 2021 will found it very difficult to obtain financing.