Quick answer: Hotels, motels and bed-and-breakfasts most often use a term loan for room renovations and brand-required upgrades, a line of credit to cover payroll and expenses in the off-season, and an SBA loan for buying or refinancing a property. Established properties with steady deposits can often get working capital within days from a non-bank lender.
Why hotels and hospitality businesses need financing
Guests expect updated rooms, and franchise brands often require property improvement plans. Occupancy swings with seasons and local events, while payroll, utilities, taxes and maintenance continue year-round.
Common uses for hotel and hospitality financing
- Room and lobby renovations
- Brand-required property improvement plan (PIP) upgrades
- HVAC, roof and pool repairs
- Furniture, fixtures and equipment
- Off-season payroll and expenses
- Revenue-management and booking software
Financing options for hotels and hospitality businesses compared
| Option | Best for | Speed |
|---|---|---|
| Term loan | Renovations, PIP upgrades, repairs | Same day to 2 days |
| Line of credit | Off-season payroll and expenses | 1–3 days |
| Equipment financing | FF&E, laundry, HVAC equipment | A few days |
| SBA loan (7(a) or 504) | Buying or refinancing a property | Several weeks to months |
What lenders look at for hotels and hospitality businesses
Lenders look at monthly deposits, occupancy trends, seasonality, existing mortgage and loan payments, and time in business.
What you need to qualify with Brookestone Funding
- 2+ years in business
- $30,000+ in monthly revenue
- 600+ credit score
- Recent business bank statements
Qualified hotels and hospitality businesses can borrow $10,000 to $2,000,000 with terms up to 36 months and rates starting at 8%. Complete applications submitted early in the day can be funded the same day.
Tips before you apply
- Have bank statements that cover both peak and slow seasons.
- Get renovation quotes and any brand PIP requirements in writing.
- Plan upgrades for your slowest months.
- Compare offers on the total amount you’ll repay, not just the rate, and size the payment to your slowest month.
Related Guides
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- Same-Day Business Loans: How They Work and How to Get Funded Today
- Can You Get a Business Loan With a 600 Credit Score? Yes — Here’s How
- Business Loan Documents Checklist: What You Need to Apply
Frequently Asked Questions
Can a hotel or hospitality business get a business loan with a 600 credit score?
Yes. Brookestone Funding works with hotels and hospitality businesses that have a 600+ credit score, 2+ years in business and $30,000+ in monthly revenue.
How fast can a hotel or hospitality business get funded?
Qualified hotels and hospitality businesses can often be funded the same day with a business term loan, or within 1–3 days with a line of credit, once the application and recent bank statements are complete.
How do hotels finance renovations?
Smaller renovations are often funded with a term loan, while major renovations or property purchases may use an SBA 7(a) or 504 loan if you can wait several weeks.
Can a hotel get a line of credit for the off-season?
Yes. A line of credit can cover payroll and expenses during slow months and be repaid when occupancy rises.
Ready to see what your hotel or hospitality business qualifies for? Brookestone Funding offers business term loans, lines of credit and SBA loans from $10,000 to $2,000,000, with same-day funding available for qualified businesses. Apply in minutes, see our business loan options, or call 212-258-0602.
