Bridge Financing for Large Hospitality Loan

Our long-time clients had a vision for a Gulf Coast hotel. They knew that they would require a large hospitality loan. Securing financing in the hospitality industry has become a little more difficult. As a result, they depended on GRP Capital to do the research to find an appropriate lending partner.

This hotel property shows great promise as it is situated near a brand new planned exit ramp. In addition, the borrowers had detailed plans to create a dual brand flagged hotel. After renovations, floors would alternate between traditional guest rooms and suites. This will provide two price points and two unique choices for travelers and guests. At the same time, the hotel would be utilizing the same staff and management company.

The bridge financing will provide resources for the full renovation and allow time for the borrowers to execute on their business plan. In addition, this will give the partners time to stabilize the asset and secure permanent financing.

Rick Patel, GRP Capital President, commented, “This $12.5 million loan showcased our GRP Capital teams’s ability to handle and close a large hospitality loan. We found a new to us lender in our network. This lender had the appetite for a large hospitality loan. They worked closely with our team and the borrowers to understand their vision and fund it.”

Bridge loans, including large loans such as this, are great options for financing, especially during the current government shutdown. Diversifying your portfolio from smaller SBA-guaranteed loans to a larger hotel or a more premium class one can be a very positive business decision for savvy entrepreneurs. 

If you are interested in non-SBA loans, particularly bridge loans, reach out to our team right away. 

Renovation Funding Basics:

• Secure a general contractor if one will be needed. Many lenders require general contractors for large renovations, particularly if there will be architectural changes. Even if you have reliable maintenance staff who can handle large jobs, you may still need to bring in a GC.

• Stay on top of budgeting. If your loan will include renovations, the lender needs many details. Most importantly, they need the components of the renovation broken down by line item, materials and labor. And if this changes through the underwriting process, the budget has to be revised.

• Determine down time:  Will renovations affect your business? Will you be able to have customers or will you be partially open for business? Be sure that your financial projections and your timeline are clear, so the lenders can build in interest free periods while you are not taking in revenue.

More information on Bridge Financing

Why Choose GRP Capital?

Our GRP Capital team specializes in crafting financing solutions tailored to each client’s unique goals.

Whether you’re purchasing, refinancing, renovating or building from the ground up, our extensive network of lenders ensures you’ll find funding that aligns with your goals and cash flow needs.

Here’s what sets us apart:

• We save you time by researching and identifying the best funding options for your project.
• Our expertise spans various loan products—including non-recourse loans, SBA loans, bridge loans, and conventional financing—so you can navigate even the most complex transactions confidently.
• Beyond lending, we provide strategic guidance on operational decisions that drive long-term business success.