Hotel financing is not easy, but with our team of specialist. We will walk you through the process untl completion. Regardless of whether you own or want to purchase, we are here to make the process as easy as possible for you. No only do we help in the real-estate financing, we can also help you in; credit card processing, phone systems and FF&E financing.


Financing is available for either flagged or non-flagged hotels any where in the USA. We also offer special financing options for resorts both inside the USA and outside.

Construction is a specialty of ours that we can offer 100% of your construction cost on most any type of project.

Contact us now and get your project approved and funded. No upfront fees at any time.

HOTEL Financing Guidelines

Loan Size: $2M - 800M

Closing Time: 30 - 45 days

Loan Term: 

Loan maturities are normally ten years for hospitality financing. Other maturities will be determined based on your specific situation.


Loan Amortization: 

25 year amortization is average for hotel financing, but our program for hotel financing has been extended up to 30 years. This is more of the exception than the rule.


Debt Service Coverage Ratio (DSCR): 

DSCR of 1.25:1 dependent upon the hotel flag,  property type, physical condition, age, location and competitiveness of market position.


Loan to Value Ratio: 

Up to 85% (conventional) with Limited Service hotels (90% for owner occupied - SBA loans) or up to 80% with Full Service hotels of MAI appraised value conforming to FIRREA and USAO guidelines and up to 75% with limited service or up to 85% (full service) of loan to acquisition cost (if applicable).


Loan Escrows: 

The borrower will typically contribute monthly to an escrow account for real estate taxes and property insurance. The borrower will usually also establish a monthly capital replacement escrow reserve equal to the greater of 4 % of gross revenues or  an amount to be determined by Graco Mortgage  on the basis of an engineering report and Graco Mortgage's site inspection. These reserves may be waived or capped depending on your situation.

Every hotel financing request is different and unique unto itself, please provide enough preliminary information and make us your choice for arranging the financing for you. We can help you whether you are purchasing, refinancing or want need construction for a new hotel.