Hotel & Hospitality Financing in DFW
Capital for select-service, full-service, and extended-stay hotels across the Dallas-Fort Worth Metroplex.
- Branded select-service hotels (Hilton, Marriott, IHG, Wyndham)
- Extended-stay product (Residence Inn, Home2, WoodSpring)
- SBA-eligible owner-operator deals
- PIP (Property Improvement Plan) refinance deals
Hotel & Hospitality Loans, at a glance
- Loan size
- $1M – $200M
- Amortization
- 25 years
- Term
- 5, 7, 10 years
- LTV
- Up to 70% (SBA 504 up to 85% for owner-user)
- DSCR
- 1.40x–1.55x
- Rate
- Wider than other CRE due to operating risk
- Typical close
- 60–120 days
Hotels are operating businesses inside a real estate wrapper, which makes hospitality the most specialized lending category in commercial real estate. Hotel lenders underwrite RevPAR, ADR, occupancy, GOP, NOI, and franchise/brand relationships, not just the bricks and mortar. The lender universe is a mix of hospitality-specialist banks, CMBS conduits that dedicate capital to hotels, SBA Preferred Lenders with hotel experience, and debt funds that understand the business cycle.
DFW is one of the best hotel markets in the country thanks to the diversity of demand drivers: corporate travel, convention, leisure, DFW airport (the second-busiest airport in the U.S. by traffic), and a deep sports and entertainment economy. We arrange hotel debt across every branded segment, from select-service deals in the suburbs to full-service downtown Dallas and Fort Worth assets, matching the lender to the specific sponsor, brand, and property story.
SBA 504 for owner-operator hotels
SBA 504 is the cheapest financing available for owner-operator hotels in DFW. Up to 85% combined leverage, 20–25 year fixed rate on the CDC portion, and eligible for both acquisitions and ground-up construction. The borrower must be the operator, and the lender will require meaningful relevant experience, SBA 504 hotel deals are not first-time flyer projects.
This is the best-kept secret of SBA lending. Most first-time hotel buyers do not realize SBA 504 even applies to their deal. We regularly place 504 hotel deals in DFW for immigrant operators buying their first or second flag and experienced hoteliers stepping up to larger assets.
CMBS and bank execution for institutional deals
For larger hotel deals ($15M+), CMBS and bank execution become the primary options. CMBS has traditionally been the deepest pool of capital for stabilized branded hotels, and DFW hotel debt has been particularly active in the CMBS market over the past decade. Spreads are wider than industrial or multifamily because of the operating risk, but proceeds and term length are attractive for long-hold sponsors.
Relationship banks with hospitality experience, both national and regional, write full-recourse deals on DFW hotels with faster closings and more flexibility during the loan term. The trade-off is recourse and shorter terms. We run every mid-to-large hotel deal through both CMBS and bank options before recommending.
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Get a QuoteHotel & Hospitality Loans, FAQ
Can a first-time hotel buyer get an SBA loan in DFW?
Yes, with relevant experience. The SBA does not require years of hotel ownership, but the lender will want to see operational experience in the hospitality industry, front desk management, hotel GM experience, or ownership of a smaller property. First-time buyers with no hospitality background face an uphill battle and should plan on 25%–30% down and more restrictive terms.
What's the maximum LTV on a stabilized DFW hotel?
70% on CMBS and bank execution for stabilized branded product with good trailing financials. SBA 504 can push to 85% combined for owner-operators. Bridge debt for repositioning can touch 65%–70% of stabilized value if the business plan is credible.
How does a PIP (Property Improvement Plan) affect financing?
A required PIP at purchase or refinance gets financed into the loan, either as part of a bridge facility with renovation draws or as an interest reserve inside a permanent loan. We structure PIP financing so the borrower has enough liquidity to complete the work without stressing debt service.
Are full-service hotels still financeable in DFW?
Yes for the right deals, trophy assets, strong sponsors, credible cash flow story. The full-service segment recovered from the COVID disruption and DFW has some of the most consistent corporate and convention demand in the country. Smaller markets and older full-service product require more selective capital.
Does brand matter for hotel financing?
Enormously. Branded hotels (Hilton, Marriott, IHG, Choice, Wyndham, Hyatt) trade in a deeper lender market than independents or boutique product. The brand delivers reservation distribution, loyalty programs, and brand standards that lenders perceive as lower risk. Independent and soft-brand hotels can still get financed, but the lender pool is narrower.
Other loan programs
SBA
SBA Loans
Government-guaranteed financing for owner-users buying, building, or expanding commercial property across North Texas.
- Loan size
- $150K → $15M
- Close
- 45–75 days
SBA 504
SBA 504 Loans
The only commercial loan product in the country that gives owner-occupiers a 20- or 25-year fixed rate on 40% of their purchase.
- Loan size
- $500K → $15M
- Close
- 60–90 days
SBA 7(a)
SBA 7(a) Loans
The most flexible small-business loan in the country, real estate, acquisition, equipment, and working capital in a single package.
- Loan size
- $50K → $5M
- Close
- 45–60 days with Preferred Lender
Ready to start your deal?
Tell us about your property and we'll match you to the right capital source across our network of 30+ lenders.