Hotel lending is underwritten on a market, not on a building. Two properties with identical construction budgets can be financed on very different terms because their competitive sets, demand generators and flag are different. This page sets out the routes that actually reach hotel projects, what the lender is testing, and the analysis the credit file has to carry.
| Route | Where it fits | What it turns on |
|---|---|---|
| SBA 7(a) | Acquisition, working capital, equipment and some construction; the most flexible federal route for an operating business. | Size standards, owner-occupancy and repayment ability from the business itself. |
| SBA 504 | Owner-occupied real estate and long-lived equipment, in a bank plus CDC debenture structure. | Eligible fixed assets and the borrower contribution rules, which rise for a new business or a special-purpose property. |
| USDA OneRD / B&I | Projects in eligible rural areas, where the guarantee helps a lender hold a longer term. | Rural eligibility, tangible balance-sheet equity of 10 to 25 percent under 7 CFR 5001.105(d), and a feasibility study above $1,000,000 for a new business. |
| Conventional bank or credit union | Experienced sponsors with strong balance sheets, and projects too large for the federal ceilings. | Coverage, leverage, sponsor liquidity and the appraised value of the collateral. |
| Construction financing | Ground-up and conversion projects, usually interest-only through construction with a conversion or take-out on stabilisation. | Guaranteed maximum price, contingency, interest reserve and a feasibility study that reaches stabilised operations, not opening day. |
| Acquisition and refinance | Existing properties, including brand transfers and post-PIP recapitalisations. | Trailing twelve-month performance, the property improvement plan, and whether the in-place operator is staying. |
The recurring underwriting problem in hotel projects is not the stabilised year — it is the eighteen to thirty-six months before it. A projection that opens at a market-average occupancy, holds rate through the ramp and carries no pre-opening burn will not survive a careful credit review, and it should not. A defensible hotel study builds the ramp explicitly: opening penetration below the competitive set, rate discipline modelled rather than assumed, seasonality applied month by month, and the interest reserve sized against that curve.
Supply is the other half of it. New rooms already in the pipeline change the penetration maths for every property in the set, and a study that ignores announced projects is describing a market that no longer exists by the time the doors open.
Our hotel work is described at hotel and motel feasibility studies, with valuation handled separately under commercial real estate appraisal.
Last reviewed September 2026. Programme figures are quoted from the sources below; everything else is professional commentary.
Independent hotel feasibility and market analysis. Fixed fee quoted in one business day; delivery in 10–15 business days.
Schedule a Qualification Zoom Hotel feasibility studiesLegal disclosure. Wert-Berater, Inc. offices are mailing addresses only. Following the COVID-19 pandemic the firm has elected to work remotely; its office locations receive mail and are not staffed for visitors or in-person meetings. Headquarters mailing address: 1968 South Coast Hwy, Ste 2382, Laguna Beach, CA 92651.
Wert-Berater, Inc. is an independent provider of feasibility studies and other related services. The firm does not provide financing or equity investment advice, and does not arrange, broker, or place debt or equity capital of any kind.
All appraisal assignments are performed by Bruce E. Jones, MAI, ASA-GC, BCA, CMEA, a member of the Appraisal Institute since 2006, a staff member of Wert-Berater, Inc. and owner of Special Purpose Realty Valuation.