Midas Financials

Hotel Acquisition Financing

Hotel acquisition loans provide capital to purchase hospitality properties. Midas helps sponsors structure and place acquisition debt with lenders experienced in hotel underwriting.

Who It's For

Buyers pursuing single-asset or portfolio hotel acquisitions, including franchise conversions, independent boutique hotels, and select-service properties in Texas growth markets.

Common Use Cases

  • Single-asset hotel purchase
  • Portfolio acquisition with cross-collateralization
  • Franchise conversion financing
  • 1031 exchange replacement property debt

How Lenders Evaluate

Lenders assess purchase price vs. appraised value, pro forma vs. trailing performance, brand standards, market supply/demand, and sponsor liquidity. Acquisition loans often require detailed business plans for value-add deals.

Typical Documentation

  • Executed purchase agreement
  • STR trailing 12 and pro forma
  • Phase I environmental (if required)
  • Appraisal and franchise approval letter
  • Sources and uses statement

How Midas Helps

We source acquisition lenders, help align your business plan with lender expectations, and manage the process from LOI through closing.

Midas Financials is a broker/advisor, not a direct lender. Financing is subject to lender approval. Terms depend on borrower strength, property performance, and market conditions.

Frequently Asked Questions

How long does commercial financing typically take?
Timelines vary by loan type and lender. Bridge loans may close in 30–60 days; conventional and SBA hotel loans often require 60–120+ days. We provide realistic timeline guidance based on your deal structure and lender requirements.
What DSCR do hotel lenders typically require?
Many hotel lenders target 1.20x–1.35x DSCR, though requirements vary by flag, market, loan type, and sponsor. Strong sponsorship and market fundamentals may offset thinner coverage in some cases.
What documents will I need to submit?
Common requirements include personal financial statements, entity documents, trailing 12-month operating statements, STR reports (for hotels), rent rolls, leases, and a purchase contract or refinance payoff statement. We provide a tailored checklist for your deal.

Ready to explore financing options?

Submit your deal details and our team will review lender fit, documentation needs, and next steps. Financing is subject to lender approval — we help you navigate the process as your broker/advisor.