Hotel & Hospitality Loans | REIF Loans
Finance limited-service hotels with DSCR hospitality loans. REIF Loans provides expert hotel financing focused on occupancy, ADR, and property value.
Hotel Loans for Hospitality Investors
Owning or refinancing a hotel requires financing that matches the business’s unique cash flow patterns and operational costs.Â
REIF Loans provides DSCR-based hotel financing that helps investors secure properties, improve occupancy, and manage property improvement plans (PIP) without relying on personal income verification.
How DSCR Hotel Loans Work
Debt Service Coverage Ratio (DSCR) loans measure whether your hotel generates enough income to cover its debt payments.
Formula:
DSCR = Net Operating Income / Total Debt Service
A ratio of 1.20 or higher generally means the property’s income covers its loan comfortably. For hotels with strong occupancy or consistent ADR, DSCR loans offer an efficient, investor-focused alternative to conventional financing.
Highlights of our DSCR hotel loans:
- No personal income or tax returns required
- Qualify based on property cash flow and performance metrics
- Flexible loan terms up to 30 years
- Available for purchase, refinance, or cash-out
- Ideal for properties with stabilized or improving occupancy trends
Key Metrics That Drive Hotel Loan Approval
Lenders assess more than just credit. they review how well your property performs in the market.
Occupancy Rate
Measures how often rooms are booked. A rate above 60–70% signals steady demand.
Average Daily Rate (ADR)
Reflects average room revenue per occupied room. A higher ADR shows pricing power and brand strength.
Revenue per Available Room (RevPAR)
Calculated as occupancy × ADR. It’s one of the best indicators of property profitability.
Debt Service Coverage Ratio (DSCR)
Shows if income comfortably covers debt payments. Most hotel loans target a DSCR of 1.20–1.40.
By focusing on these metrics, REIF Loans helps investors highlight their property’s strengths during underwriting.
PIP and Renovation Financing for Hotel Properties
Hotel brands often require Property Improvement Plans (PIPs) for upgrades and compliance. These improvements enhance guest experience, drive ADR, and maintain brand alignment. but they require capital.
REIF Loans provides financing solutions that include renovation and PIP funding, allowing investors to complete necessary updates without depleting reserves.
Common PIP uses include:
- Room and lobby renovations
- FF&E upgrades (furniture, fixtures, and equipment)
- Technology and energy efficiency improvements
- ADA compliance upgrades
We help structure loans that align with your construction timeline, ensuring minimal disruption to ongoing operations.
Advantages of DSCR-Based Hotel Financing
DSCR hotel loans simplify the process for investors by focusing on what matters most: property cash flow.
Cash Flow Qualification
Approval is based on NOI, not personal tax returns.
Scalable Investment Strategy
Finance multiple properties under one investor portfolio plan.
Refinance and Cash-Out Options
Leverage equity to acquire new hotels or upgrade existing ones.
Long-Term Stability
Fixed-rate options up to 30 years support predictable planning and portfolio growth.
Nationwide Reach
Programs available in 32 states with both recourse and non-recourse options.
Why Hotel Investors Choose REIF Loans
As experienced real estate investors ourselves, REIF Loans understands the financial nuances of hospitality assets from seasonality to franchise requirements.
What sets REIF apart:
- Transparent DSCR underwriting tailored to hotel performance
- Access to top-tier appraisers, franchise consultants, and legal partners
- Guidance through PIP and brand compliance processes
- Support for first-time hotel investors and experienced operators alike
Our mission: Value, Results, Service. Every loan we arrange is designed to protect your cash flow and position your property for long-term profitability.
Frequently Asked Questions About Hotel DSCR Loans
What types of hotels qualify?
 Limited-service, select-service, boutique, and flagged properties typically qualify.
Can I include renovation costs in my loan?
 Yes. We can structure financing that includes acquisition plus PIP funds.
What credit score is required?
Typically 660+, though strong property performance can offset lower credit.
Do you finance new construction hotels?
 Yes. Ground-up and conversion projects can qualify under our commercial DSCR programs.
Can foreign nationals apply?
Yes. REIF Loans provides Foreign National DSCR options for international investors.
Start Financing Your Hotel Investment Today
Whether you’re acquiring your first limited-service property or expanding a hospitality portfolio, REIF Loans can help structure a DSCR loan that matches your goals. Get transparent terms, expert guidance, and a partner who understands your investment strategy.