Hospitality Finance
Hospitality Real Estate Financing in Florida
Hotels, motels, and vacation rentals require specialized financing — most conventional lenders won't touch STRs, and value-add motels need bridge capital. Here's every loan type available, current rates, LTV expectations, and which lender to target for each deal.
Loan Types by Property & Strategy
DSCR Loans (STR & Vacation Rentals)
Best for: Vacation rental and STR investors
Qualify on property income, not personal income. Strong option when banks refuse STRs. Lenders use market rent surveys or 12-month Airbnb history to underwrite.
Conventional Bank Loans (Brand Hotels)
Best for: Stabilized brand hotels with 2+ year history
Banks finance stabilized, flagged hotels with clean operations and 2-year P&L. Require DSCR ≥ 1.25x, strong personal credit, and full property inspection.
SBA 7(a) Loans (Motels, Small Hotels)
Best for: Owner-operated motels and small hotels
SBA 7(a) allows higher LTV (lower down payment) for owner-operated hospitality businesses. Requires business plan, 2-year projections, personal guarantee. Best for operators buying their first property.
Bridge Loans (Value-Add, Renovation)
Best for: Value-add motel conversions
Short-term financing for acquisition + renovation. Once property is stabilized, refinance to permanent loan at lower rate. Higher cost but enables deals conventional lenders won't touch.
CMBS Loans (Large Hotels)
Best for: Stabilized hotels $10M+
Commercial mortgage-backed securities loans for larger hotels. Non-recourse (doesn't require personal guarantee). Prepayment penalties (yield maintenance or defeasance). Best for long-term hold.
Portfolio Lenders (Flexible Underwriting)
Best for: STRs, extended-stay, non-standard properties
Regional banks and credit unions hold loans in-house — more flexible underwriting than conventional. Accept STR income, smaller properties, and non-standard hospitality assets that bigger banks reject.
Underwriting Requirements
DSCR (Minimum)
1.25x
Most lenders require NOI ÷ Annual Debt Service ≥ 1.25. Strong properties qualify at 1.20x. Below 1.0x = no conventional financing.
Down Payment
25–35%
Conventional: 30–35%. DSCR loans: 25–30%. SBA 7(a): 10–20%. Value-add bridge: 35%+ of stabilized value.
Occupancy Track Record
2 Years
Conventional lenders want 2-year historical P&L. DSCR lenders accept market surveys or 6-month Airbnb history for new acquisitions.
Find the Right Lender
Match your property type to the best financing path.
| Property Type | Best Loan Type | Rate Range | Down Payment |
|---|---|---|---|
| Vacation Rental / STR | DSCR Loan | 7.0–8.5% | 25–30% |
| Brand Hotel (Marriott, IHG) | Conventional Bank | 6.5–7.5% | 30–35% |
| Owner-Operated Motel | SBA 7(a) | Prime + 3% | 10–20% |
| Value-Add Motel (Renovation) | Bridge Loan | 8.5–11% | 35%+ |
| Large Hotel ($10M+) | CMBS | 6.5–7.5% | 30–35% |
| Non-Standard / STR Portfolio | Portfolio Lender | 7.0–8.5% | 30–35% |
Frequently Asked Questions
Can I get a conventional mortgage for a vacation rental?
Most conventional lenders won't finance STRs. Better options: DSCR loans (qualify on property NOI), portfolio lenders (hold loans in-house), or seller financing. Expect 7–8.5% rates and 25–30% down payment.
What is a DSCR loan and how does it work for hotels?
DSCR loans qualify based on property income, not personal income. If the hotel's NOI divided by annual debt service exceeds 1.20–1.25x, you qualify. Ideal for hospitality investors with strong properties but complex personal financials. Rates: 7–8.5%.
What LTV can I expect for hotel financing?
Stabilized brand hotels: 65–70% LTV. Value-add motels: 50–65% LTV (higher risk = lower LTV). STR/vacation rentals: 65–75% LTV with DSCR or portfolio lenders. SBA 7(a) and 504: up to 80–90% LTV for owner-occupied.
Need help structuring your hospitality deal?
We work with 29+ lenders across Florida and can match your hotel, motel, or STR deal to the right capital source. Tell us your property type, price, and timeline.