Hotel and Accommodation Business Loans
Accommodation businesses ask for the largest amounts we see. 43.5% of the accommodation businesses that come to us were seeking $75,000 or more — the highest share of any industry we have looked at, against 28.5% across the rest.
That is a property-shaped number in a business-lending context, and it has one main cause: this industry runs on renovation cycles. Rooms have to be refreshed, bathrooms replaced, systems upgraded and common areas redone on a schedule the market sets rather than the owner. Those projects do not come in small increments.
What do accommodation businesses borrow for?
Equipment and refurbishment, above the market rate — and the asks are large.
| Use of funds | Accommodation | All industries |
|---|---|---|
| Equipment purchase | 30.4% | 25.5% |
| Business expansion | 26.1% | 29.8% |
| Seeking $75,000 or more | 43.5% | 28.5% |
Self-reported by more than 1,000 businesses that have used TopFunders.ai. This is one of the smaller industry samples in the set, so treat the direction as meaningful and the precise figures as indicative rather than exact.
The equipment share understates what is happening, because a great deal of accommodation spend sits in a grey area between equipment and fit-out: laundry plant, HVAC, kitchen equipment, furniture packages, PMS and lock systems. Some of it can secure its own financing. Some of it cannot, and that distinction changes which product you should be asking for.
Why it matters for your application: anything with resale value can be financed against itself, usually cheaper and with more flexibility on trading history. Anything that becomes part of the building generally cannot, and needs unsecured working capital instead. Splitting a refurbishment into those two buckets before you apply often lowers the blended cost of the whole project.
What being matched means
Businesses that complete our application are matched with a funding partner.
To be precise about what that means: matched is an introduction to the partner best positioned for that profile. It is not an approval and not a funding decision. Every partner underwrites independently and decides for itself.
Who this covers
Hotels carry the heaviest refurbishment cycles and the most complex mix of financeable and non-financeable spend in one project. They also have the steadiest daily card volume in the sector, which opens revenue-based products alongside conventional term borrowing.
Motels are usually owner-operated with tighter margins and shorter refurbishment cycles, and the spend is more often a defined single project — a roof, a parking resurface, a room block — which suits a term loan with a known cost better than a drawable line.
Bed and breakfasts are the smallest operations here and the most seasonal. Cash flow can swing hard between peak and trough, which makes when you apply matter as much as what you ask for.
Vacation-rental operators run on platform payouts and furnishing cycles rather than a front desk. Revenue is genuinely daily in season and near zero out of it, which is the classic case for a facility you draw and repay around the calendar.
Campgrounds and RV parks are infrastructure businesses: hookups, sites, sanitation, utilities. Much of the spend is genuine equipment with resale value, and the seasonality is the sharpest in the sector.
Which products fit an accommodation business?
| Product | Time to funding | Fits when |
|---|---|---|
| Equipment financing | Days, varies with the vendor | Laundry, HVAC, kitchen, furniture, lock and PMS systems |
| Online term loan | 24 to 48 hours | A defined refurbishment cost and steady deposits |
| Online line of credit | 1 to 3 business days | Seasonal working capital, staged projects |
| SBA 7(a) loan | 30 to 90 days | A large project and you can wait for the cheapest money |
| Merchant cash advance | Same day to 24 hours | Daily card volume and urgent timing |
Funding times are measured after approval, not from when you start the application. The clock only starts once the lender has a complete file.
Given how large the typical ask is in this industry, the SBA row deserves more attention here than on most of these pages. On a six-figure refurbishment, the difference between the cheapest and the fastest product is the single biggest number in the project — often larger than the savings from any contractor negotiation.
What qualifies an accommodation business?
| What a lender checks | What helps |
|---|---|
| Time in business | 6 months is the common minimum, 2+ years opens bank and SBA |
| Card and deposit volume | Daily takings are a strong signal in this trade |
| Seasonality pattern | A predictable season reads better than an unpredictable one |
| The equipment itself | A vendor quote and resale value support the loan |
| Existing obligations | Fewer active advances means more available capacity |
Timing is the lever most owners underuse. Lenders assess three to six months of bank statements, so an accommodation business applying at the end of its season presents very differently from the same business applying at the end of its trough — on identical annual trade. If the refurbishment is planned, applying before the quiet months rather than during them is worth real money.
What does accommodation finance cost?
Equipment financing is usually the cheapest route for anything with resale value, because the asset backs the loan. SBA 7(a) loans run cheapest overall for operations that qualify and can wait 30 to 90 days. Online term loans typically run 15% to 45% APR. Merchant cash advances price in factor rates rather than interest and can work out equivalent to APRs in the 40% to 350% range.
The repayment shape matters as much as the rate in a seasonal business. A fixed monthly payment set during peak season becomes heavy in the months with no guests in the building. A facility that flexes with takings, or one you draw and repay around the season, survives an uneven year better than a fixed schedule does — even when the fixed schedule looks cheaper on paper.
Fast money earns its cost when the calendar will not wait: a boiler that fails in season, a booking block you would lose, a compliance deadline. A planned refurbishment scheduled for the off-season rarely qualifies.
What happens when you apply through TopFunders
One short application, about two minutes. We compare what you enter against what each of our 30+ vetted funding partners will actually consider, and introduce you to the single partner best positioned for a business like yours.
- Matching uses only the details you enter. There is no credit check of any kind at this stage, so getting matched does not affect your credit score.
- We never ask for your Social Security number or Tax ID to match you.
- One partner receives your details, not a dozen. You are not fielding calls for a week.
TopFunders is not a lender and not a loan broker. We do not originate, underwrite, price or fund loans, and we make no credit decisions. The matched funding partner reviews your application, sets your amount, rate and terms, and decides whether to fund you.
Frequently asked questions
Can I get a business loan to renovate a hotel or motel?
Yes, and it is what this industry borrows for most. Split the project first: anything with resale value — laundry plant, HVAC, kitchen equipment, furniture, lock systems — can usually be financed against itself at better rates, while work that becomes part of the building needs unsecured working capital. Financing the two parts separately often lowers the cost of the whole project.
Is this a mortgage or property loan?
No. Our partners fund the business — refurbishment, equipment, working capital and seasonal cash flow — not the purchase of the property itself. Buying a hotel or motel is commercial mortgage territory and a different market.
How much can an accommodation business borrow?
It depends on deposits, trading history and whether the spend can be secured against an asset. This industry asks for more than most: 43.5% of accommodation businesses in our applicant base were seeking $75,000 or more. See how much you can borrow for how lenders size an offer.
How does seasonality affect what I am offered?
Considerably, and in both directions. Lenders assess three to six months of bank statements, so applying at the end of a strong season presents a materially stronger picture than applying in the trough. A predictable seasonal pattern reads well; an unpredictable one narrows the field.
Can a vacation-rental business get funding?
Yes. Platform payouts count as deposits, and a facility you draw in the furnishing months and repay in season fits the shape better than a fixed monthly payment running all year.
Does checking my options hurt my credit?
No. Matching uses only the details you enter, so there is no inquiry on your credit file and no effect on your score. A credit inquiry happens later, if and when you make a formal application with the matched partner, and you consent to that separately.