Top Hotel Renovation Loan Lenders 2026: Ranked by Project Type

Finding the right lender for hotel renovation loans starts with one question: What exactly are you renovating? A brand-mandated PIP from Hilton or Marriott arrives with a deadline, a scope, and no check attached, and the best hotel renovation loan lenders in 2026 vary dramatically depending on the type of work involved.

Structural work calls for SBA 504 lenders who understand long-term, fixed-rate financing. Energy-efficient upgrades qualify for C-PACE programs that repay through property tax assessments. FF&E replacements need equipment-focused lenders who can close in days. And properties that need renovation capital before they stabilize often require bridge lenders who underwrite on pro forma performance.

This guide ranks the top lenders for hotel renovation loans in 2026 by renovation type, so you can match financing to scope rather than forcing your project into whatever loan a single bank happens to offer.

SBA 504 lenders for hotel renovation loans: major structural work

SBA 504 loans deliver the lowest down payments and longest terms available for hotel renovations: as little as 15% down, below-market fixed rates, and full amortization over 25 years with no balloon payment. They work best for structural renovations, lobby overhauls, and building expansions where the property qualifies as owner-occupied.

The SBA 7(a) program caps at $5 million per loan. The 504 program has no maximum loan amount, though the SBA-backed second mortgage portion is capped at $5.5 million for standard projects. Both programs require the franchise to appear in the SBA Franchise Directory and the borrower to demonstrate hospitality experience.

TMC Financing

TMC Financing is the No. 1 SBA 504 hotel lender in the nation, having provided 22 hotel owners with $70 million in SBA funds in fiscal year 2022 alone. TMC finances both franchised and independent hotels for purchase, construction, renovation, and equipment through the 504 program. They are licensed to lend in Arizona, California, Hawaii, Nevada, and Oregon.

• Best for: Owner-operators in western states with structural renovation projects

• 504 structure: ~50% first mortgage from a conventional lender, ~35% SBA-backed second mortgage, 15% borrower equity

Celtic Bank

Celtic Bank is a Preferred SBA Lender headquartered in Salt Lake City that approves SBA 7(a) hotel loan applications in-house, which accelerates timelines compared to lenders that route applications through the SBA for approval. Celtic funds both flagged and non-flagged hotels for renovation, acquisition, construction, and refinancing. Based on SBA lending data from 2018–2023, Celtic Bank ranked among the top three SBA lenders for hotels by total loan volume.

• Best for: Hotel owners who need fast SBA processing and renovate properties outside the 504's geographic or owner-occupancy constraints

• Loan type: SBA 7(a) with terms up to 25 years for real estate-backed transactions

Peoples Bank Mortgage

Peoples Bank is a Preferred SBA Lender specializing in hospitality, with deep franchise coordination across brands including Choice Hotels and Wyndham. Their underwriting uses STR reports and RevPAR Index trends to align loan structure with actual market performance, not just ADR alone. Peoples Bank structures both 7(a) and 504 hotel loans, with particular expertise in the "PIP lift" analysis that lenders use to evaluate whether renovation costs will produce measurable RevPAR improvement.

• Best for: Experienced operators structuring SBA financing around brand-mandated PIPs

• Differentiator: Global cash flow modeling that consolidates multi-entity borrowers into a single credit profile

C-PACE lenders for energy-efficient hotel renovations

C-PACE (Commercial Property Assessed Clean Energy) finances the energy-efficient components of a renovation, including HVAC systems, LED lighting, building envelope improvements, water conservation, and renewable energy installations. Repayment is structured as a property tax assessment over terms up to 30 years at fixed rates, and C-PACE can fund up to 20–35% of the stabilized capital stack.

For hotel owners, C-PACE is powerful because it displaces higher-cost mezzanine debt or preferred equity while reducing utility costs. It works alongside senior mortgages and requires lender consent from the existing mortgage holder. C-PACE is now enabled in over 40 states.

PETROS PACE Finance

Petros PACE Finance is the largest direct originator of balance-sheet funded C-PACE lending in the country, with nearly $2 billion in directly funded transactions. Petros has financed hotel projects including the Knoxville Marriott and has published extensively on how C-PACE financing supports hotel PIPs specifically. Their balance-sheet model means they fund directly rather than brokering to third-party capital, which provides borrowers with greater certainty of close.

• Best for: Hotel owners who need C-PACE for PIP-related energy improvements and value direct execution

• Differentiator: Balance-sheet funded with no syndication delays or capital uncertainty

Nuveen Green Capital

Nuveen Green Capital (NGC) closed the largest C-PACE transaction in history at $290 million for the Pendry Hotel & Residences in Tampa, demonstrating the scale C-PACE can reach in hospitality. NGC has also financed projects like the Bishop's Lodge in Santa Fe ($76.2 million) and the Hotel Marcel in New Haven, the nation's first all-electric, fossil-fuel-free hotel. NGC deploys C-PACE mid-construction, which gives developers flexibility to incorporate financing at multiple stages of a project.

• Best for: Larger hotel renovation and construction projects where C-PACE represents a significant portion of the capital stack

• Differentiator: Proven execution at institutional scale with mid-construction deployment capability

FF&E loan lenders for hotel renovation projects

FF&E loans fund the movable assets in a hotel renovation: beds, case goods, lobby furniture, televisions, HVAC units, POS systems, and soft goods like carpet and drapes. These loans are typically structured as equipment financing with 3–10 year terms amortized over the useful life of the items. They often close faster than real estate-backed loans because the collateral is the equipment itself.

FF&E financing is commonly layered on top of a senior mortgage or SBA loan. The borrower uses one loan for structural work and a separate FF&E loan for equipment, keeping senior debt lower and improving the property's debt service coverage ratio.

CICG (Commercial Investment Capital Group)

CICG runs a hotel-only CapEx/FF&E financing program covering renovations, PIPs, brand conversions, and FF&E carve-outs for new construction. Transaction sizes reach up to $10 million with fixed rates from 7–10% based on credit review and project scope. Terms run 3–10 years based on the useful life of the equipment, with interest-only periods of up to 18 months available for properties that need time to stabilize after renovation.

• Best for: Hotel owners who need dedicated FF&E financing that separates equipment costs from their senior mortgage

• Differentiator: Hotel-only focus with up to 100% financing of FF&E acquisition costs, including soft costs and construction-related items

AVANA Capital

AVANA Capital offers hotel financing across SBA 504, bridge, and construction loans, with strategic partnerships that set it apart. Through its Oaktree and IHG partnerships, AVANA delivers institutional-grade construction and bridge financing while also running an IHG co-lending construction program specifically for IHG hotel developers. AVANA's hospitality lending team structures each loan around the borrower's business plan, capital stack, and timeline.

• Best for: Hotel developers and operators who need a lender with both SBA and private-credit capabilities across the full capital stack

• Differentiator: IHG and Oaktree partnerships provide co-lending programs not available through most hospitality lenders

Hotel renovation bridge loan lenders

Bridge loans provide 12–36 month financing at higher rates to cover renovation costs, with the expectation that the borrower refinances into permanent debt once the property stabilizes. They are essential when a hotel cannot qualify for permanent financing until the PIP is complete and performance metrics recover.

According to the Crittenden Report's 2026 hotel financing outlook, hospitality-specialty bridge lenders and debt funds are pricing at SOFR + 350 to 600 basis points with up to 70% leverage.

Peachtree Group

Peachtree Group is one of the most active hospitality-specialty lenders in the market. According to the Crittenden Report, Peachtree will originate loans starting at $15 million across all hotel types in 2026, with an emphasis on limited and select service. Leverage reaches up to 85%, with rates from 7.50% to 10% depending on leverage, construction risk, and cash flow. Peachtree lends in most markets with multiple demand drivers.

• Best for: Mid-to-large hotel renovations where the property needs capital before it reaches stabilized performance

• Differentiator: 85% leverage, among the highest in hospitality bridge lending, with a track record as both lender and operator

Access Point Financial

Access Point Financial is a hospitality-specialty lender offering CapEx, bridge, construction, and mezzanine financing for hotels. APF focuses on value-add transactions where a hotel is undergoing a conversion or brand-mandated PIP. Their underwriting emphasizes pro forma performance rather than relying solely on historical financials, which matters when renovation is expected to significantly improve property economics.

• Best for: Value-add hotel transactions where historical performance does not reflect post-renovation potential

• Differentiator: Pro forma-based underwriting that evaluates the deal rather than just trailing financials

Bank lenders returning to hotel renovation deals

After pulling back from hospitality during 2022–2024, traditional banks are re-engaging on hotel lending in 2026. The Crittenden Report projects bank lenders will offer up to 65% LTC at rates around 6.75%, with DSCR requirements starting at 1.25x. Banks favor branded select-service and upper-upscale properties with experienced sponsors.

Bank financing offers relationship benefits that alternative lenders cannot match: future refinancing flexibility, working capital lines, treasury management, and deposit account relationships that improve your overall cost of capital.

Bank OZK

Bank OZK was the largest U.S. construction lender in 2023 and is named in the Crittenden Report as a bank returning to hotel deals in 2026. OZK has shifted its lending strategy in recent years by implementing loan size caps and a syndication desk, but remains one of the most experienced bank lenders for larger commercial real estate projects, including hotel renovations.

• Best for: Larger hotel renovation projects from experienced sponsors who can also bring deposits and a banking relationship

• Caution: OZK is being more selective in 2026; expect rigorous underwriting and preference for top-tier branded properties

M&T Bank

M&T Bank is a regional bank with strong commercial real estate capabilities, identified in the Crittenden Report's 2026 hotel lending outlook as returning to hotel deals. M&T has a significant presence in the Northeast and Mid-Atlantic markets and brings a relationship-banking model that benefits borrowers who plan multiple projects over time.

• Best for: Hotel owners in the Northeast/Mid-Atlantic who value long-term banking relationships

• Differentiator: Regional CRE expertise combined with a full-service banking platform

Live Oak Bank

Live Oak Bank has built a dedicated hospitality lending division that specializes in conventional financing for upper-midscale to upscale limited service, select service, and extended stay hotels across Hilton, Marriott, and IHG brands. Unlike the larger banks on this list, Live Oak focuses specifically on hospitality, meaning their underwriters evaluate hotels daily rather than as an occasional deal type.

• Best for: Branded select-service and extended-stay hotel operators seeking a bank lender with hospitality-dedicated underwriting

• Differentiator: Hospitality-only focus within their real estate division; provides SBA and conventional loan options

How to match lender type to your hotel renovation scope

Most hotel renovations are not single-loan projects. A $4 million PIP on a 150-room select-service property might combine an SBA 504 loan for structural work with a separate FF&E loan for furniture and equipment. A full-service hotel with a $10 million scope might layer C-PACE for energy systems, bridge financing for renovation capital, and permanent debt for the takeout.

Here is a quick-reference framework:

The owners who close fastest are the ones who apply to multiple lenders simultaneously rather than sequentially, comparing term sheets from different lender types to identify the best structure for their specific scope.

Compare all hotel renovation loan lenders through Bridge Marketplace

Matching your renovation scope to the right lender, or combination of lenders, takes time you may not have when a PIP deadline is approaching. Bridge Marketplace connects hotel owners with specialized hospitality lenders across every category covered in this guide: SBA, C-PACE, FF&E, bridge, and bank balance sheet.

One 10-minute application. Multiple term sheets, typically within 48 hours. You compare offers across lender types and choose the structure that fits your renovation scope, timeline, and cost of capital targets.

Upload your PIP documentation, trailing 12-month financials, and borrower profile. Bridge structures the deal to meet current underwriting standards and coordinates across lenders so you can focus on managing the renovation rather than managing the financing process.

Start your 10-minute application →

Frequently asked questions

Can I combine multiple loan types for one hotel renovation?

Yes. Many mid-market hotel renovations use two or three financing structures simultaneously. A common approach is SBA or conventional financing for structural work, an FF&E loan for furniture and equipment, and C-PACE for energy-efficient components. This layered approach improves your debt service coverage ratio by keeping senior debt lower and preserving cash reserves for operating needs.

How long does it take to close a hotel renovation loan?

Timelines vary by loan type. Conventional bank loans typically close in 45–90 days. SBA 7(a) loans can close in 30–60 days with a Preferred Lender. SBA 504 loans take longer due to the two-lender structure. FF&E loans from specialized lenders can close in as little as two weeks. Bridge loans typically close in 30–45 days. Bridge Marketplace aims to present multiple lender offers within 48 hours of a complete application.

What documents do lenders need for hotel renovation financing?

At minimum, expect to provide: trailing 12-month operating statements (T-12), STR competitive set reports, PIP documentation with cost breakdowns and brand timelines, personal financial statements, franchise agreement confirmation, and environmental/property condition reports. A complete package submitted upfront is the fastest path to approval.

What is the difference between SBA 7(a) and SBA 504 for hotel renovations?

SBA 7(a) loans cap at $5 million and offer maximum flexibility, covering renovations, working capital, and refinancing with one loan. SBA 504 loans have no maximum project cost (though the SBA-backed second mortgage portion caps at $5.5 million) and deliver lower rates with longer fixed terms, making them better suited for larger structural renovations. The choice depends on project size, whether the property is owner-occupied, and how the renovation costs interact with existing debt.

Does C-PACE work for hotel PIP renovations specifically?

C-PACE can finance the energy-efficient components within a PIP, including HVAC upgrades, LED lighting, building envelope improvements, and water conservation systems. It does not cover non-energy items like furniture or cosmetic finishes. C-PACE requires mortgage holder consent and is available in over 40 states with enabling legislation. When combined with other financing for the remaining PIP scope, C-PACE reduces the overall weighted average cost of capital.

Conclusion: choosing the right lender starts with your renovation scope

The top lenders for hotel renovation loans in 2026 are not interchangeable. An SBA 504 lender built for structural work cannot solve a pre-stabilization capital gap, and a bridge lender pricing at SOFR + 500 is the wrong fit for a property that qualifies for below-market fixed rates. The lender you need depends entirely on what you are renovating, how your property is performing today, and where it needs to be when the work is done.

Start by breaking your renovation scope into its core components: structural work, energy systems, FF&E, and any capital needed before the property stabilizes. Then match each component to the lender type built for that specific job. The hotel owners who secure the best terms are the ones who treat financing as a multi-lender strategy rather than a single-loan decision.

If a PIP deadline is approaching and you need term sheets from multiple lender types quickly, Bridge Marketplace can connect you with SBA, C-PACE, FF&E, bridge, and bank lenders through one application. Upload your documentation, compare offers side by side, and choose the structure that fits your project scope, timeline, and cost of capital targets.

Start your 10-minute application →