What lenders review on a hotel financing request
A hotel is an operating business that happens to sit on real estate. Lenders underwrite rooms revenue, not a rent roll. Kelly Dutton arranges hospitality loans at OneClick Commercial Funding for owners who can show how the property actually performs.
The trailing numbers that matter
Bring occupancy, average daily rate, and revenue per available room for the last twelve months, plus the year before. A single strong month does not carry a file. Lenders also want the profit and loss after franchise fees, management fees, and payroll. If those lines are missing, the net operating income is not real yet.
Seasonality matters in Phoenix and in resort markets. Show the slow months. A lender who discovers them in underwriting will reprice the deal or walk.
Flag, franchise, and property improvement
A flagged hotel can be easier to finance than an independent one, and it can also be more expensive to own. Franchise agreements, remaining term, and any required property improvement plan belong in the first package. A PIP that is not funded is a hole in the loan, not a footnote.
Independent hotels are financeable. They need a clearer story on demand: who stays, why, and what happens if one account leaves. The American Hotel and Lodging Association tracks industry operating trends that lenders already read. Your file still has to beat a generic market average with property-level numbers.
How this differs from an apartment loan
Apartment DSCR starts with leases. Hotel coverage starts with daily rooms revenue and a management plan. If you are comparing the two, read how DSCR works on apartment loans. The document list is also different. Start from the commercial loan document checklist and add the STR or equivalent trailing report.
Ground-up hotels are a construction conversation, not a stabilized one. See ground-up construction loan draws before you model a permanent hotel loan on a building that is not open.
What this is not
This is not a commitment to lend. Loan terms, amounts, and rates are not guaranteed. Every file still goes through lender approval, credit review, and underwriting.
About the author
Kelly Dutton is a senior commercial mortgage broker at OneClick Commercial Funding in Phoenix. She arranges financing for business owners and real estate investors. She is a broker, not a lender. Read more on the About Kelly Dutton page.
Next step
Call (480) 363-1412 or visit kelly-dutton.com to request a financing call with Kelly Dutton at OneClick Commercial Funding.