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% |
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.