Hotel Property Financing Canada

From boutique independents to flagged select-service assets, hotels underwrite on cash flow quality and market dynamics. We match loan structure to ADR, occupancy, RevPAR trends, and your operating plan. For renovations or rebranding, we build in the capital you need to lift performance and stabilize.

Who We Serve

• Owner-operators buying or refinancing flagged or independent hotels

• Investors acquiring select-service or limited-service assets

• Sponsors completing PIP work or rebranding

• Groups repositioning older properties through capex and revenue management

Properties We Finance

• Select-service and limited-service: Branded and independent

• Boutique and lifestyle: Urban and destination markets

• Resort and leisure: Mountain, waterfront, and seasonal markets

• Mixed-use with hotel components: Case by case where hotel income can be isolated

Eligible Scenarios

• Purchase: Stabilized or improving assets sized to trailing and recent run-rate performance

• Refinance: Improve rate or term, or unlock equity for PIP and upgrades

• Bridge and value-add: Short-term capital for renovations and revenue recovery

• Reflag or rebrand: Terms aligned to franchise and management requirements

How Hotel Financing Is Structured

We start with historicals, seasonality, and your next two years of plans.

• Leverage: Sized to DSCR, volatility, and market depth

• Rates and term: Fixed or variable from 1 to 10 years with practical prepayment options

• Amortization: Typically 20 to 25 years on stabilized hotel assets

• Reserves and covenants: FF&E reserves, PIP holdbacks, cash sweep triggers, and reporting that fit the plan

• Management and franchise: Comfort packages and key agreements addressed early

Typical Loan Parameters and Eligibility

(Actual terms vary by asset quality, sponsor strength, market, and lender policy.)

• LTV: Often 55 to 65 percent on conventional hotel loans; higher leverage considered case by case with stronger mitigants

• DSCR: Commonly 1.30x or higher given income variability

• Security and recourse: First mortgage standard; guarantees vary by leverage and business plan

• Sponsor profile: Relevant hotel experience, solid net worth and liquidity, credible operating and capex plan

Streamlined Documents Checklist

We stage what is needed so timing stays on track.

• Operating package: Three-year P&L, monthly STR or comp data if available, ADR, occupancy, RevPAR trends

• Property and legal: Franchise and management agreements, licenses, tax and insurance details

• Reports: Appraisal, Phase I ESA, building condition, and if resort, seasonality analysis

• Capex and PIP: Scope, budget, schedule, and vendor quotes where applicable

Process and Timelines

• Initial review (1 to 3 business days): Indicative sizing and lender short list

• Term sheets (3 to 10 business days): Competitive quotes matched to your goals

• Diligence and approvals (2 to 6 weeks): Appraisal, environmental, legal, franchise consents

• Closing and funding: Conditions satisfied, reserves set, security registered

Why Work With Us

• Hospitality fluency: We understand brand standards, PIP timelines, and cash flow seasonality

• Structure first: Debt aligned to your operating plan and market realities

• Breadth of capital: Banks, credit unions, alternative and private lenders across Canada

• Clarity and speed: Milestones, early issue spotting, and plain language

Get Started

Message our team to talk through your goals and market. We will outline practical options for hotel property financing in Canada so you can compare terms and move forward with confidence.