What LTV can I expect on a hotel renovation bridge loan?

Most lenders offer 65-70% of as-stabilized value or 75-80% of current value, whichever is lower. The renovation holdback is funded from day one but released in draws as work is completed and inspected. Strong sponsors with hotel track records may access higher leverage.

How long does hotel renovation bridge financing take to close?

Hotel bridge loans typically close in 14-30 days, significantly faster than permanent debt. Speed is critical when PIP deadlines are approaching or franchise agreements require renovation commitment within a specific timeframe. Pre-approval can shorten this to under 14 days.

What happens if my hotel renovation takes longer than the bridge term?

Most hotel bridge loans include one or two 6-12 month extension options, typically at a 25-50 basis point fee per extension. Extensions require that renovation is progressing on schedule and the borrower remains in good standing. Budget for extensions in your project timeline.

What is the best financing for hotel at 70% LTV?

Hotel renovation and PIP bridge loans provide 12-36 month interest-only financing at up to 70% LTV with rates from 8% to 15%. These short-term facilities fund brand-mandated property improvement plans, room renovations, and common area upgrades while the hotel operates through disruption, then refinance into permanent CMBS debt once stabilized.

Written by Ed Freeman, Capital Advisory — PeerSense

Prime: 6.75% 10-Yr Treasury: 4.25% Est. Bridge Range: 8% - 15%as of Mar 19, 2026

Hotel

Bridge Loan for Hotel Renovation & PIP

Fund your hotel PIP or major renovation with bridge financing at 70% LTV. 12-36 month terms, interest-only, with a clear path to permanent CMBS refinance upon stabilization.

Minimum 30-35% equity required. Experienced hotel operators with a brand-mandated PIP or planned renovation, adequate capital reserves to fund the renovation timeline, and a clear exit strategy to permanent CMBS or sale upon stabilization.

Discuss Your Hotel Deal Call (317) 452-6990

KEY TERMS

Deal Parameters at a Glance

LTV Target

70%

Est. Rate Range

8% - 15%

Term

12-36 months

Recourse

Partial to full recourse

DSCR

N/A (underwritten to as-stabilized value)

Closing Speed

14-30 days

Min Loan Size

$2M

Loan Products

Bridge

FIT ASSESSMENT

When Is This the Right Fit?

Bridge financing is right when your hotel faces a brand-mandated PIP, needs a major room renovation, or requires common area upgrades before qualifying for permanent debt. Hotels undergoing renovation typically experience 10-30% revenue disruption that disqualifies them from CMBS underwriting. Bridge debt covers this transition period with interest-only payments that minimize cash burn. Your exit strategy should be clear: either refinance into CMBS at 65% LTV once the hotel achieves 12 months post-renovation stabilized NOI, or sell the improved asset. If your PIP budget exceeds 30% of property value, consider whether the renovation economics justify the bridge cost.

ADVANTAGES

Key Benefits

Interest-only payments during renovation preserve cash for the PIP

70% LTV based on as-stabilized value maximizes renovation capital

12-36 month terms align with typical hotel renovation timelines

Renovation holdback structure ensures capital is available at each milestone

Clear bridge-to-CMBS exit path once RevPAR stabilizes post-renovation

ALTERNATIVES

Strategic Alternatives

65% LTV Hotel Refinance After PIP

If your PIP is already complete and the hotel is stabilized

Learn more

Bridge-to-CMBS Hotel Acquisition

If you are acquiring a hotel that needs renovation rather than refinancing

Learn more

SBA 504 Hotel Owner-Occupied

If you are an owner-operator and the hotel needs only minor improvements

Learn more

Frequently Asked Questions

Hotel PIP bridge loans include renovation holdback structures that release funds at construction milestones. Lenders underwrite to as-stabilized value (post-PIP), not current value, and model revenue disruption during renovation. Brand approval of the PIP scope is typically required before closing.

Connect with Ed Freeman — Direct Capital Advisory

PeerSense pre-underwrites every deal before presenting it to our institutional capital sources. With 500+ lender relationships and live market rate intelligence, we match your hotel deal with the right capital source — right now.

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No upfront retainer · Fee at closing only · Complimentary initial consultation

Written by Ed Freeman, Capital Advisory — PeerSense. Updated March 2026.

Disclaimer: The information on this page is provided for educational purposes only and does not constitute financial, legal, or investment advice. Rates, terms, and availability are subject to change based on market conditions, property characteristics, and borrower qualifications. The rate ranges cited reflect approximate market pricing as of March 2026 and may not reflect current conditions at the time of reading. PeerSense is a capital advisory firm, not a lender. We do not originate, fund, or service loans. All financing is provided by third-party lenders subject to their own underwriting criteria and approval processes. Borrowers should consult with qualified financial and legal professionals before making any financing decisions.