Hotel Bridge Loans for a Property in Transition

A hotel bridge request starts with the reason permanent financing does not fit today. You may be acquiring a property that needs renovation, changing the franchise flag, or completing a property improvement plan before the hotel can support a longer term loan. The lender needs your current operating results, the remaining work, the funding required to complete it, and a credible repayment route. CapitalAx acts as a broker, not a direct lender. We review the hotel and financing plan before presenting it to lenders whose underwriting fits the transaction. A bridge loan cannot make an unsupported room revenue forecast acceptable. Your existing occupancy, average daily rate, and operating expenses must be distinguishable from the assumptions in your proposed business plan. If renovation takes rooms out of service, account for the lost revenue as well as the work itself. A franchise improvement plan may introduce deadlines and costs that are separate from ordinary repairs. Your loan request should identify those obligations before the lender sets its structure. For a refinance exit, test the hotel against permanent lender requirements using its expected completed condition and supportable cash flow. If the plan depends on a sale, show what the buyer would acquire and what remains unfinished. Pricing, loan proceeds, recourse, reserves, and completion requirements are determined for the individual deal. No advertised structure is a commitment to lend. You should also disclose existing liens and prepayment provisions so the proposed bridge proceeds can be compared with the actual amount needed to close.