Hotel business plans built for SBA and 504 lenders
Hotels draw more SBA loan dollars than any other industry. Underwriters judge them on the market first: occupancy, ADR and RevPAR against the competitive set, then the brand, the property improvement plan and who will run it.
Written by a former underwriter who approved hotel loans for 10 years.
- SBA 7(a)
- SBA 504
- 36-month projections
- Written assumptions
- DSCR
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What a lender checks on a hotels & motels loan
Your plan answers these before the credit officer has to ask.
Market performance
Occupancy, ADR and RevPAR for the property and its competitive set, using STR data when it's available.
Brand and franchise costs
The flag, its royalty, marketing and reservation fees, and what the brand brings in direct bookings.
Property improvement plan
The PIP's scope, cost and timeline, and how revenue holds up while work is underway.
Management
Your hospitality experience, or the management company's track record and fee structure.
Seasonality and reserves
Monthly cash flow through slow seasons, plus a reserve for FF&E replacement.
Value
How the purchase price splits across real estate, FF&E and business value, which shapes the loan structure.
Numbers your plan will show
Every figure comes with a written assumption, across 36 months of P&L, balance sheet and cash flow.
- Occupancy %
- ADR
- RevPAR
- Departmental expenses
- Gross operating profit
- Franchise & management fees
- FF&E reserve
- NOI and DSCR
Plans for every kind of request
Startups, acquisitions, expansions and property purchases, for SBA 7(a), SBA 504 and conventional bank loans.
- SBA 504 purchase
- SBA 7(a) acquisition
- Ground-up construction
- PIP & renovation
- Refinance
- Change of flag
Common questions
Is a 504 or a 7(a) loan better for buying a hotel?
Both are common. A 504 is often used when the deal is mostly real estate and you want a long fixed rate on part of the financing. A 7(a) is more flexible and can cover working capital and other costs in one loan. Your lender's preference matters too, and we write the plan to match the structure.
Do you include the PIP in the projections?
Yes. The plan budgets the PIP, schedules it, and models the revenue impact while rooms are out of service.
Do I need an STR report?
It helps, and lenders like seeing one. If you don't have it, we build the market analysis from the data that is available and explain the sources.
SBA business plans for any industry
Ready to put your loan request in front of a lender?
Name, email and phone. That's all it takes to get started.