Cliffport Business Capital, a small-business funding service in Galveston, TX, offers this hotel loan calculator for renovations, FF&E and purchases. Enter an amount, a rate you were quoted and a term to see the monthly payment, total interest and total repaid. It does not know any partner's pricing.
What the Calculator Computes
It assumes a fully amortizing loan with a fixed rate and equal monthly payments. It shows the payment, the total interest and the total repaid. It does not include fees, balloon payments, variable rates or the real-estate portion of a hotel purchase.
A Worked Hotel Renovation Example (Illustrative)
A 30-room motel plans a $300,000 room renovation. With a quoted rate of 10 percent over seven years, the calculator shows a monthly payment of about $4,980 and total interest of roughly $118,300. Spread across 30 rooms, that is about $166 per room per month the renovated rooms need to earn above their previous level.
The rate here is an example only. Use the rate on your own quote.
Hotel Renovation Financing: Using the Result
- Compare the payment with current monthly net operating income
- Test a few slower months, not only the average
- Add existing FF&E or equipment payments
- Ask whether the partner allows interest-only months during construction
What Partners Review for a Hotel Loan
Occupancy and average daily rate history, property condition, franchise terms, hotel tax filings and the owner's experience. More on the hotels and motels page, in the boutique hotel guide and on the term loan page. Other tools and guides are on the resources page.
By Cliffport Business Capital · Updated