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How this refinance option works
Hotel refinancing replaces existing hospitality property debt after review of operating history, occupancy, ADR, RevPAR, gross operating profit, franchise or management agreements, PIP obligations, reserves, value and sponsor experience.
Hotels are operating businesses as well as real estate, so revenue and expense volatility receive more attention than a simple rent roll.
A refinance may address maturity, completed renovation, flag transition or eligible equity. Future PIP work, seasonality and insurance can reduce immediate proceeds or create reserves.
Short-term rental houses and one-to-four-unit Airbnb properties are not underwritten as hotels; they are addressed on the investor-property refinance page.