Hospitality has been one of the most underserved corners of the small-balance commercial real estate market. Banks pulled back after 2020. CMBS conduits price the asset wide and demand institutional sponsorship. Agency execution doesn't apply. The result is a financing gap of $500,000 to $10,000,000 where good operators with stabilized cash flow can't get a fair quote.
Riverside Park Capital now lends directly into that gap. Our hotel and motel program is built for sponsors who own real, operating hospitality assets and need either acquisition debt, a refinance of maturing CMBS or bank loans, or a cash-out refinance to redeploy equity.
The Headline: Up to 75% LTV with Unlimited Cash-Out
The structural feature that separates this program from anything else in the small-balance space is the cash-out treatment. Most lenders cap cash-back at fixed dollar amounts, season-of-ownership rules, or "rate-and-term-plus-X" formulas that quietly leave equity stranded. We don't.
Cash-out on a qualifying refinance is constrained only by 75% LTV and supportable debt yield. If your hotel appraises and the trailing-12 NOI supports the leverage, the dollars come back to you at closing. There is no fixed cap.
That matters most for sponsors who:
- Acquired a hotel below replacement cost in 2020–2022 and have since stabilized RevPAR
- Completed a PIP or brand conversion and want to extract the value-add at the new appraised value
- Are sitting on long-held assets with significant equity buildup and want to redeploy
- Need to take out a maturing CMBS or bank loan and cash out the basis differential simultaneously
What We Finance
The eligible asset list is broad on purpose:
- Limited-service and select-service hotels (Hampton Inn, Holiday Inn Express, Fairfield, Comfort Inn, Best Western, etc.)
- Boutique and independent hotels with operating history
- Flagged / branded full-service hotels
- Roadside and corridor motels in Top 200 MSA submarkets
- Extended-stay product
Loan Parameters
- Loan size: $500,000 – $10,000,000
- Maximum LTV: 75% (acquisition, refinance, and cash-out)
- Cash-out cap: Unlimited — no fixed dollar limit
- Minimum debt yield: 10% on permanent, 8% on bridge
- Minimum DSCR: 1.25 on stabilized permanent debt
- Term: 5–10 years permanent; 12–36 months bridge
- PIP / capex: Can be financed inside the loan up to the all-in 75% LTV cap
- Recourse: Full, partial, or non-recourse depending on leverage and sponsor
- Geography: Top 200 U.S. MSAs only
The Geography Rule Matters
We lend in the Top 200 U.S. Metropolitan Statistical Areas. That covers roughly 85% of U.S. population and the substantial majority of brandable, financeable hospitality product. Rural roadside motels in sub–100,000-population markets are not eligible — not because they aren't real businesses, but because the exit market for the debt isn't there.
What "Unlimited Cash-Out" Actually Means in Practice
A worked example: A sponsor owns a 95-key Hampton Inn acquired in 2021 for $7.5M with a $5.0M loan. Trailing-12 NOI is now $1.1M. Appraisal at refinance comes in at $11.2M. We can lend to 75% LTV — $8.4M — provided debt yield clears 10% (it does: $1.1M / $8.4M = 13.1%) and DSCR clears 1.25.
Payoff of the existing $5.0M loan plus closing costs leaves roughly $3.3M in cash to the sponsor at the closing table. There is no separate cash-out cap that says "only $1M back." The leverage is the leverage.
Who This Isn't For
We're a credit shop, not a workout shop. The program isn't a fit for non-operating assets, hotels with unresolved environmental or franchise issues, or sub–$500,000 loan requests. It's also not a fit for hospitality outside the Top 200 MSAs.
How to Submit
The fastest path is a one-page summary with the property address, room count, flag (or independent), trailing-12 P&L, current debt balance, and the use of proceeds. Submit a loan request through our submission form and the credit team responds within one business day.
About the author
Capital Markets Desk
Research & Analysis
The Capital Markets Desk at Riverside Park Capital provides expert perspectives on commercial and residential real estate lending, market trends, and investment strategies.