Hotel and Accommodation Business Loans
41.7% of the accommodation businesses that come to us are seeking $75,000 or more, against 30.9% across every other industry. This trade asks big more often than most.
That gap is the most useful thing on this page, because it changes what a good answer looks like. Advice written for a $20,000 working-capital ask does not transfer to a $150,000 refurbishment, and most hospitality funding advice is the former wearing the latter's clothes.
TopFunders for hotels and accommodation businesses
A refurbishment cycle should not mean applying to six lenders and collecting a decline from each. For an accommodation business the products that fit are usually equipment financing, a term loan or a line of credit. Matching runs with no credit check of any kind and no effect on your credit score, and with the right product we help businesses get funded in less than 24 hours.
We do not send your application to every lender on a list. We introduce you to the partners ready to make your business an offer.
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 partners ready to fund a business like yours.
- Which partners you are put in front of is decided using real approvals from businesses like yours.
- The only information about you that matching uses is what 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.
- We do not compare rates across partners for you, so compare the terms before you sign.
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.
Why does accommodation borrowing run so large?
Because the spending is set by a cycle rather than by a cash-flow gap. Rooms, bathrooms, systems and common areas have to be refreshed on a schedule the market enforces. Guests compare you against the property that refurbished last year, and those projects do not arrive in small increments. A single floor of rooms is a six-figure decision before anyone has discussed the lobby.
Two things follow, and they are the reason the usual advice misfires:
The ask is planned, not urgent. Most large borrowing in this trade is scheduled months ahead, which means the expensive-but-fast products that suit an emergency are usually the wrong tool. Time is the one advantage a planned refurbishment has, and spending it is what makes the cheap products reachable.
The spend is mixed. A refurbishment is rarely one purchase. It is laundry plant and HVAC and kitchen equipment and furniture and lock systems (some of which secures its own financing) alongside plaster, tiling and wiring, which does not. Treating it as one number is what pushes owners into a single expensive product for the whole project.
What do accommodation businesses borrow for?
| Use of funds | Accommodation | All industries |
|---|---|---|
| Equipment purchase | 29.2% | 29.0% |
| Business expansion | 29.2% | 34.4% |
| Seeking $75,000 or more | 41.7% | 30.9% |
Self-reported by more than 1,000 funding applications to TopFunders.ai. This is the smallest industry sample in the set, so treat the direction as meaningful and every precise figure here as directional 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.
Should a refurbishment be financed as one loan or several?
Usually several, and this is the highest-value decision on a large project. Split the work into what has resale value and what becomes part of the building before you apply.
| What it is | Examples | How it is usually funded |
|---|---|---|
| Has resale value | Laundry plant, HVAC units, kitchen equipment, furniture packages, lock and PMS systems | Equipment financing, secured by the asset itself, typically cheaper and more forgiving on trading history |
| Becomes the building | Plaster, tiling, wiring, plumbing, roofing, parking | Unsecured working capital: a term loan or a drawable line |
Financing the two parts separately often lowers the blended cost of the whole project, because the secured half is priced against an asset instead of against your bank statements. On a six-figure refurbishment that difference is usually larger than anything a contractor negotiation will recover.
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?
Equipment financing is the natural fit for the largest share of this industry's spend, because so much of a refurbishment secures itself. Where the work becomes part of the building, a term loan suits a defined cost and a line of credit suits a staged project. The table shows when each applies and how fast it funds.
| 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, typical lender practice rather than a published SBA timeline | 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 |
Timings and rates are typical market ranges, not published figures or commitments. Your actual terms are set by the funding partner.
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 here, the SBA row deserves more attention on this page than on most. On a six-figure refurbishment the difference between the cheapest product and the fastest one is the single biggest number in the project.
What qualifies an accommodation business?
Daily card and deposit volume is the strongest signal in this trade, and a predictable season reads better to a lender than a bigger but erratic one. Six months of trading is the common minimum at online lenders, and a vendor quote turns an equipment request into a secured one.
| 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 |
Requirements last verified: September 6, 2026. Lender criteria change; these are typical market ranges rather than any single partner's published terms.
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 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 a partner whose criteria and products fit that profile. It is not an approval and not a funding decision. Every partner underwrites independently and decides for itself.
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.
Frequently asked questions
How long does business loan approval take for accommodation businesses?
Typical approval times depend on the product more than the property. Equipment financing often gets a same-day decision, some online lines of credit decide in minutes, and merchant cash advances can approve in hours. SBA 7(a) loans take far longer. What slows an accommodation business down is seasonal deposits, and a refurbishment without a defined cost. Timings by product: Business Loan Approval Times by Product (2026).
Why do accommodation businesses borrow more than other industries?
Because the spending is driven by refurbishment cycles rather than cash-flow gaps, and a refresh arrives as one large project rather than a series of small ones. In our applicant base, 41.7% of accommodation businesses were seeking $75,000 or more, against 30.9% across every other industry.
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: 41.7% 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. The only information about you that matching uses is what 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.