We specialize in financing and refinancing hotels, motels, resorts, and boutique and flagged properties across Toronto, the GTA and Ontario - acquisitions, renewals, construction and PIP draws, and bridge capital, placed with the institutional, secondary institutional and private lenders who actually read hotel operating statements.
Specializing in Hotel Acquisition, Refinance, Construction/PIP & Bridge Financing
Buying, refinancing, renewing, building or completing a PIP on a Toronto-area hotel? We know how lenders read RevPAR, ADR, occupancy and going-concern value.
Our practice is built exclusively around hotels, motels, resorts and boutique properties - not general commercial real estate with a hotel added to the list. We run an acquisition desk, a refinance and renewal desk, a construction and PIP desk, and a bridge desk, and we place every file with the lender that actually understands going- concern hospitality value, not just the real estate underneath it.
Acquisition financing for flagged and independent hotels, sized against trailing NOI, DSCR, and a going-concern appraisal, not a generic commercial template.
Pull equity out of a stabilized property, get ahead of a maturing loan, or reset the amortization on a hotel or motel with improving NOI.
Full-spectrum hotel mortgage placement - purchase, renewal, and long-term hold debt structured around your NOI, DSCR, and franchise position.
Draw-based construction and PIP facilities for ground-up builds, brand-mandated renovations, and re-flag conversions, with a clear path to permanent takeout.
Highway motels and seasonal resorts across Ontario, underwritten around seasonal cash flow, shoulder-season occupancy, and independent-operator management.
Independent and lifestyle hotels underwritten on the operator and the asset, without a franchise track record to lean on for brand-standard comfort.
Short-term, interest-only capital for a fast-closing purchase, a maturing loan with no time for a full institutional process, or a property mid-turnaround.
A hotel is not underwritten like an apartment building or a retail plaza. The property is a business as much as it is real estate, and lenders start with net operating income: revenue from rooms, food and beverage, and ancillary sources, less operating expenses and a reserve for furniture, fixtures and equipment (FF&E), typically funded at 3% to 5% of revenue. From there they build a debt service coverage ratio, generally wanting 1.25x to 1.40x at minimum before they will size a loan against that income.
RevPAR (revenue per available room) and ADR (average daily rate) get benchmarked against a defined competitive set to test whether performance is durable or a one-year anomaly, and occupancy trends are read alongside seasonality, especially for resort and highway motel properties. Lenders also distinguish between a going-concern appraisal - which values the real estate and the operating business together - and a real-estate- only valuation, since the two can produce materially different numbers for the same property.
A franchise or flag agreement with a brand such as Marriott, Hilton, IHG, Wyndham or Best Western brings brand standards, a reservation and loyalty system, and a property improvement plan (PIP) that can require significant capital at acquisition or renewal. Lenders review the remaining term on the flag, the outstanding PIP scope and cost, and the management agreement governing day-to-day operations, since a weak or expiring agreement changes how much risk sits with the operator versus the brand.
Conventional institutional lenders typically size hotel loans at 50% to 65% loan-to- value, occasionally reaching 70% to 75% on strong, well-flagged assets with durable cash flow. Terms generally run one to ten years with amortizations of fifteen to twenty-five years, and institutional pricing on the best files starts roughly in the mid-5% range. Secondary institutional lenders price higher for independent, seasonal or lower-occupancy properties, and private or bridge capital is priced highest of all but is interest-only and closes fastest. Two to three years of operating history plus a going-concern appraisal is the standard institutional requirement.
All financing is subject to lender approval, appraisal, and operator and property qualification. Rates, structures, and loan-to-value limits vary by lender, flag, property type, and location.
Most banks have a narrow appetite for hotels - one or two flags they know well, a minimum loan size, and a checklist built for office and retail that does not fit a going-concern hospitality appraisal. When a file falls outside that box, the answer is often a fast no rather than a considered look at the property's real performance.
We work exclusively in hotel, motel and resort financing, which means we already know which institutional lenders like which flags, which secondary institutional lenders will underwrite an independent operator with a strong three-year trend, and which private lenders can close a bridge in weeks when a deadline will not wait. We take one file to the right shortlist instead of one file to one lender, and we structure the PIP, the franchise transfer, and the appraisal scope before the file ever reaches an underwriter's desk.
All mortgages are subject to lender approval and property qualification. Terms, rates and loan-to-value limits vary by lender, flag, property type and location.
A short conversation about the asset, its flag or independence, trailing NOI, and what the financing needs to accomplish.
We take the operating statements, STR/CBRE-style comp set and franchise documents to the institutional, secondary institutional and private lenders most likely to underwrite this exact asset.
We coordinate the appraisal, PIP review, franchise approval, and legal work straight through to closing and, on construction files, through the full draw schedule.
Every market has its own hotel demand drivers - convention and corporate travel downtown, airport and highway corridor demand further out, and seasonal resort patterns in cottage country. We place financing with lenders who read each market correctly.
Underwriting, deposits, PIP obligations, and the full diligence checklist.
Equity take-outs, maturity planning, and resetting your amortization.
What changes at renewal and how to avoid a forced sale to a single lender.
NOI, DSCR minimums, and how coverage ratios drive your loan size.
Draw schedules, PIP-driven renovations, and the path to permanent takeout.
Ongoing coverage of Toronto hospitality lending, flags, and market conditions.
Conventional institutional lenders generally finance 50% to 65% of the lesser of purchase price or appraised value, with strong, well-flagged assets sometimes reaching 70% to 75%. Independent, seasonal and thin-history properties usually sit lower in that range. All figures are subject to lender approval, appraisal and property qualification.
Net operating income, debt service coverage ratio (institutional lenders typically want 1.25x to 1.40x minimum), RevPAR and ADR trends against the competitive set, occupancy stability, the strength and remaining term of any franchise or flag agreement, outstanding PIP obligations, the management agreement, and FF&E reserve funding at roughly 3% to 5% of revenue. Going-concern value is assessed separately from a real-estate-only valuation.
Both. Flagged hotels under brands such as Marriott, Hilton, IHG, Wyndham and Best Western are easier for institutional and bank lenders to size because of established brand standards and reservation systems. Independent and boutique hotels are financeable too, typically through secondary institutional or private lenders comfortable underwriting the operator and the real estate on their own merits.
Terms generally run one to ten years with amortizations of fifteen to twenty-five years. Institutional pricing on strong flagged assets starts roughly in the mid-5% range; secondary institutional lenders price higher for independent or lower-occupancy properties; private and bridge capital costs more still but closes fastest and is usually interest-only.
Yes. A property improvement plan tied to a franchise agreement is a normal part of acquisition and refinance underwriting. We structure purchase or term financing alongside a PIP or renovation facility so brand-mandated capital is planned for at closing, not discovered afterward.
Most institutional lenders want two to three years of property-level financial statements plus a going-concern appraisal projecting stabilized NOI. New acquisitions with a change of ownership or flag are underwritten more conservatively until a stabilized track record under the new owner or brand is established.
Yes. We arrange hotel, motel and resort financing across the Greater Toronto Area and Ontario - from downtown Toronto flagged hotels to highway motels and seasonal resorts along major corridors and in cottage country.
A single bank underwrites against its own credit box and may not touch a going-concern hotel appraisal, a change of flag, or a seasonal resort at all. A hospitality-focused broker places the same file with whichever institutional, secondary institutional or private lender actually understands hotel operating statements, and shops the deal instead of taking the first no as final.
No cost, no obligation. Tell us about the property, the flag, and your timeline, and we'll tell you what's realistic before you go any further.
Institutional, secondary institutional, and private lenders compared side by side for your specific hotel, motel, or resort.
We know how Canadian hotel lenders read NOI, DSCR, RevPAR, ADR, PIPs, and going-concern appraisals - because that is all we do.
Hotel financing is one piece of running a property. These are the Toronto and GTA services we work alongside every week.
When a hotel or motel loan can't be placed with a conventional lender - a maturity default, a tight closing window, or a property mid-repositioning - we work with a network of private and institutional bridge lenders across Toronto, the GTA and Ontario who lend on the equity and going-concern value of the asset. Call or text (647) 342-1355 for a fast, confidential review - no cost and no obligation.
*Subject to lender review, asset quality and exit strategy*
Bridge lending
Interest-only, fast-close structures
Short-term, interest-only capital sized to NOI and asset value so you can close on time, complete a PIP, or ride out a seasonal dip - then refinance into a conventional or institutional hotel mortgage once the property stabilizes.
Exit strategy
Built with a take-out in mind
Every private or bridge file is structured alongside a clear path back to institutional financing - stronger DSCR, a completed PIP, or a stabilized RevPAR and occupancy trend - not the purchase price or a guaranteed rate.
