A hotel bridge loan funds a hotel that is worth more after a plan is executed than it earns today. Ambition Lending lends on that plan: we underwrite the asset, the business plan and the exit, not just the trailing numbers, and return a term sheet within 24 hours on most requests.
Hotel bridge loan terms at a glance
| Loan size | From $100,000, no fixed maximum |
|---|---|
| Leverage | Up to 75% of value, also limited by loan-to-cost and debt yield |
| Term | 6–24 months, interest-only |
| Typical pricing | 8–12% interest and 2–4 points, deal-dependent |
| Hotel types | Select-service, extended-stay, boutique, small portfolios; flagged or independent |
| Uses | Acquisition, refinance, renovation, PIP, flag change, occupancy rebuild, cash-out bridge (deal-dependent) |
| Markets | Nationwide, including metropolitan, suburban and rural markets |
| Borrower | Business-purpose only; LLC or other entity with guarantor |
When does a hotel bridge loan make sense?
- You're buying a hotel with a renovation, rebrand or management plan that raises rate and occupancy.
- A franchisor's property improvement plan (PIP) has a deadline and a cost.
- Your loan is maturing and trailing income won't size a permanent loan yet.
- The seller wants a certain, fast close.
The full explainer — how lenders size hotel loans, who lends, and what permanent lenders take you out — is in hotel bridge loans: how they work and who lends.
How we underwrite a hotel
- Trailing 12-month P&L and monthly operating statements, with occupancy, average daily rate and RevPAR.
- Business plan: renovation scope, budget and schedule; rooms out of service; brand and management.
- Income coverage: net operating income against the loan — run it in the debt yield calculator and read what debt yield is.
- Exit: refinance with a bank, CMBS, life company or SBA lender, or sale after stabilization — see bridge loan exit strategies.
What to send for a term sheet
- Property address, purchase contract or current payoff.
- T12 and year-to-date P&L; STR or market report if available.
- Franchise agreement and PIP (if flagged). See how hotel PIP financing works.
- Renovation budget and timeline.
- Sponsor and management experience, and entity documents.
Related programs: commercial bridge loans, mobile home park and RV park financing, multifamily bridge loans and short-term rental financing. Send the deal to get terms.
Frequently asked questions
What is a hotel bridge loan?
Short-term, usually interest-only financing to acquire, refinance, renovate, rebrand or stabilize a hotel. It is sized on the hotel's value and business plan, then repaid by a permanent loan or a sale once trailing income supports it.
What hotels does Ambition Lending finance?
Select-service, extended-stay, boutique and small hotel portfolios, flagged or independent, in metropolitan, suburban and rural markets.
How much can I borrow on a hotel bridge loan?
Ambition Lending hotel bridge loans start at $100,000 with no fixed maximum and go up to 75% of value, also limited by loan-to-cost and the hotel's income (debt yield). Renovation funds are released in draws after inspections.
How long is a hotel bridge loan?
Ambition Lending's bridge loans run 6 to 24 months, sized to the renovation or stabilization plan.
What do you need to quote a hotel loan?
The address, purchase price or payoff, trailing 12-month P&L, franchise agreement and any PIP, the renovation budget and timeline, and who will manage the hotel. We return a term sheet within 24 hours on most requests.
Updated by the Ambition Lending credit team.
