Best Financing Options for Choice Hotels Owners: Acquisition, PIP, Construction, and Refinancing

Whether you own a Comfort Inn in suburban Atlanta or you're breaking ground on a Cambria in Nashville, capital decisions shape every stage of the journey. Choice Hotels International now operates over 7,500 hotels across 22 brands and 45 countries, and its core brands (Comfort, Quality Inn, Sleep Inn, Econo Lodge, and Rodeway Inn) awarded 247 U.S. franchise agreements in 2025. That growth means more owners need financing, and more owners need it fast.

In January 2025, Choice Hotels partnered with Bridge to give franchisees a single point of access to more than 100 lenders, including banks, private debt lenders, and family offices, through a dedicated Choice Hotels landing page. This guide walks through every financing option available to Choice hoteliers, how the partnership works, and what to expect when you apply.

How the Bridge–Choice Hotels Partnership Works

The partnership is straightforward: Choice Hotels franchisees and prospective developers submit one loan request through a customized Choice Hotels page on Bridge's platform. Bridge's technology then packages the request, including a digital offering memorandum and deal-screening materials, and distributes it to its lender network.

Here's what that means in practice:

• One application, multiple offers. Instead of calling five banks and filling out five separate applications, you complete one request in roughly 10 minutes.

• Competing term sheets. Bridge aims to deliver multiple offers within 48 hours so you can compare rates, terms, and structures side by side.

• Full loan-type coverage. The lender network covers SBA, conventional, bridge, CMBS, and C-PACE products, so the right structure finds you rather than the other way around.

• Deal-level analysis. Bridge creates screening materials that give lenders context on your project, a level of analysis typically available only to large, institutional hotel groups.

As Dominic Dragisich, Choice Hotels' Executive Vice President of Operations and Chief Global Brand Officer, put it: "Helping our hoteliers obtain and optimize financing for their properties is a high priority, and this agreement with Bridge will give them access to competitive loan offerings through an easy-to-use online interface." (PR Newswire, January 2025)

Financing Options by Project Type

Not every Choice Hotels deal looks the same. A Quality Inn conversion in a secondary market has different capital needs than a ground-up Cambria in a top-25 MSA. Below is a breakdown of the most common project types and the loan structures that fit each.

Acquiring an Existing Choice Hotels Property

Buying an operating Comfort Inn, Quality Inn, or Econo Lodge typically requires a purchase loan covering the acquisition price plus any immediate renovation costs. Conversion projects (rebranding an independent or competing-brand hotel under a Choice flag) often fall in the $780,000 to $3.1 million range for an 80-room property, depending on PIP scope and market.

Best-fit loan products:

• SBA 7(a): Up to $5 million. Can bundle acquisition price, PIP costs, FF&E, and working capital in one loan. Terms up to 25 years for real estate. Works well for owner-operators of economy and midscale properties.

• SBA 504: Fixed-rate, long-term financing with as little as 10% down. Structured as a three-party deal (bank at 50%, CDC at 40%, borrower at 10%). Ideal when you want to lock in a rate on a stabilized asset.

• Conventional bank loans: For borrowers with strong banking relationships and seasoned track records. Typically faster to close, but may require higher down payments.

Building a New Choice Hotels Property

New-construction projects, whether a Sleep Inn prototype or a full-service Cambria, carry the highest capital requirements. An 80-room new build can range from $9.5 million to $14.3 million depending on brand tier, land costs, and market.

Best-fit loan products:

• Construction loans: Short-term (typically 18–36 months), interest-only during the build, with a permanent takeout upon stabilization. Loan-to-cost ratios generally fall between 60% and 75%.

• SBA 504: Available for ground-up construction with the same favorable terms: 10% down, fixed-rate CDC portion, and repayment periods of up to 25 years.

• C-PACE (Commercial Property Assessed Clean Energy): Covers the energy-efficient components of your build, including HVAC systems, lighting, insulation, and water-saving fixtures. Repaid through a property tax assessment over 20–30 years, keeping your senior loan proceeds free for other costs. C-PACE programs are now active in 32 states, with cumulative investment surpassing $10 billion nationally.

Renovating for a PIP (Property Improvement Plan)

Brand-mandated PIPs are a recurring reality for Choice Hotels franchisees. Costs typically range from $10,000 to $25,000 per room depending on scope, from a soft-goods refresh at the low end to full bathroom and HVAC overhauls at the high end. For a 100-room property, that translates to $1 million to $2.5 million in capital.

Best-fit loan products:

• SBA 7(a): Bundles renovation costs with working capital, covering the PIP and the cash-flow disruption that comes with rooms out of service. Learn more about how Bridge manages PIP financing.

• Bridge loans (short-term): 12–36-month terms designed to fund the renovation quickly and refinance into permanent debt once the property stabilizes at higher RevPAR. Useful when the PIP timeline is tight and you can't wait for SBA processing.

• C-PACE: If your PIP includes energy-efficiency upgrades like LED retrofits, PTAC-to-HVAC conversions, and low-flow plumbing, C-PACE can cover those components separately. The financing sits on the property tax roll and doesn't count against your senior loan covenants.

Refinancing an Existing Property

Owners who purchased during the post-pandemic rate run-up or who hold maturing CMBS debt may find refinancing improves cash flow significantly.

Best-fit loan products:

• CMBS (Commercial Mortgage-Backed Securities): Non-recourse, fixed-rate loans typically ranging from $2 million to $50 million+. Best suited for stabilized, cash-flowing hotels. CMBS locks in a rate for 5–10 years with 25–30-year amortization.

• SBA 504 refinance: Allows eligible borrowers to refinance existing debt at fixed rates with low down payments. Must meet SBA's ownership and occupancy requirements.

• Conventional refinance: Competitive option when you have strong NOI and an established banking relationship.

Loan Products at a Glance

How the SOAR Program Connects to Financing

Choice Hotels' SOAR (Supporting Ownership Access & Representation) program is one of the hospitality industry's longest-running diversity initiatives. Since its inception over 20 years ago, the program has awarded more than 387 franchise agreements to veterans and underrepresented entrepreneurs, including Black, Hispanic, and Native American owners, as well as women.

In 2024, SOAR hit new records, executing nearly 40 new franchise agreements and opening 20 hotels. Choice was the first hotel company to establish a dedicated development team focused exclusively on extending ownership opportunities to underrepresented populations.

Bridge's partnership strengthens the financial side of this pipeline. SOAR participants who secure a franchise agreement still need capital to close, and that's where access to 100+ lenders through a single application makes a measurable difference. First-time hotel owners, who may not have deep banking relationships, benefit from Bridge's competitive process because it levels the playing field: your deal is evaluated by dozens of lenders simultaneously, regardless of whether you've done one deal or twenty.

What You'll Need to Apply

Bridge's application takes roughly 10 minutes and asks for basic project and financial details. To move toward term sheets, plan to have the following ready:

• Property details: Address, room count, brand, franchise agreement status

• Project summary: Acquisition price, construction budget, or PIP scope and estimated cost

• Financial documents: Two to three years of tax returns, a current profit-and-loss statement, and a personal financial statement

• Franchise documentation: Executed or pending franchise agreement with Choice Hotels

• Entity information: Operating entity structure, ownership breakdown, any guarantors

After submission, Bridge creates a digital offering memorandum and distributes your request across its lender network. Most borrowers can expect to start receiving competing term sheets within 48 hours.

Frequently Asked Questions

Does the Bridge–Choice Hotels partnership cover all 22 Choice brands?

Yes. Whether you operate a Comfort Inn, Quality Inn, Cambria, Sleep Inn, Econo Lodge, Rodeway Inn, or any other Choice brand, you can submit a financing request through Bridge's dedicated Choice Hotels page.

Can I finance a PIP and acquisition together in one loan?

With an SBA 7(a) loan, yes. The program allows you to bundle the acquisition price, PIP costs, FF&E, and working capital within a single structure, up to $5 million total. For larger deals, a bridge loan plus permanent takeout may be the better path.

What if I'm a first-time hotel owner through the SOAR program?

Bridge's platform is designed to work for both experienced operators and first-time buyers. The competitive process means your deal goes to 100+ lenders regardless of your track record. SBA loans, which require lower down payments and offer government-backed guarantees, are particularly well-suited for first-time owners.

How does C-PACE financing interact with my senior loan?

C-PACE sits on the property tax roll and is repaid through a special assessment. It doesn't count as traditional debt. This means it won't typically trigger loan-to-value covenants on your senior mortgage. Currently, 40 states have C-PACE enabling legislation, with 32 active programs.

How quickly can I expect term sheets?

Bridge aims to deliver multiple competing offers within 48 hours of a completed submission. Final closing timelines depend on the loan product. SBA loans typically take 4 to 8 weeks, while bridge loans and conventional products can close faster.

Conclusion

Finding the best financing options for Choice Hotels owners comes down to matching the right loan structure to your specific project, whether that's an acquisition, new build, PIP renovation, or refinance. The good news is you don't have to navigate that process alone. Through the Bridge and Choice Hotels partnership, franchisees across all 22 brands can submit a single application and receive competing term sheets from more than 100 lenders, typically within 48 hours.

That means less time chasing banks and more time focused on your property. Whether you're a seasoned multi-unit operator or a first-time owner coming through the SOAR program, the process works the same way: one request, multiple offers, and the ability to compare rates and terms side by side.

Ready to explore your options? Choice Hotels franchisees can submit a financing request in about 10 minutes through Bridge's dedicated Choice Hotels page and start comparing offers from 100+ lenders.