Hotel Loans in Waco, TX
Hotel loans in Waco provide financing for acquisitions, renovations, equipment upgrades, and working capital across full-service, limited-service, and extended-stay properties.
Hotel loans in Waco provide financing for acquisitions, renovations, equipment upgrades, and working capital across full-service, limited-service, and extended-stay properties.
Waco hotel financing is complicated by seasonal tourism swings tied to Baylor University events and Magnolia Market traffic, plus Interstate 35 corridor competition and franchise flag requirements that generic lenders often misunderstand or decline outright.
Traditional banks see "hotel" and immediately apply hospitality underwriting overlays: higher debt-service coverage minimums, personal-recourse requirements, and appraisal processes that take ninety days. Meanwhile, your boiler needs replacement before November football weekends, or you lose $40,000 in bookings. Franchise agreements from Hilton, Marriott, or IHG demand Property Improvement Plans on tight deadlines. Lenders unfamiliar with these realities either decline or offer terms that ignore how Baylor graduation weekend can generate 22 percent of your annual revenue in seventy-two hours.
Scarletgate Financial builds your loan package around documentation lenders actually need: trailing twelve-month STR reports, franchise correspondence, capital expenditure schedules, and local market occupancy data. We translate your RevPAR trends into underwriter language and match your scenario to the right capital source.
Loan programs
Our brokerage arranges SBA 7(a) loans for hotel purchases, commercial real estate loans for ground-up builds or refinances, equipment financing for FF&E replacements, bridge loans for time-sensitive acquisitions, and working capital lines to smooth seasonal gaps.
### SBA 7(a) Loans for Hotel Purchase
SBA 7(a) loans finance up to 90 percent of a hotel acquisition or franchise conversion. Eligible uses include buying an existing property on Valley Mills Drive, refinancing seller debt, or purchasing real estate plus working capital in one close. You will need three years of lodging operating history (yours or the property's), personal financial statements, and a franchise agreement if flagged. We organize your Profit & Loss statements, Schedule of Real Estate Owned, and franchise disclosure documents into the SBA's required format.
### Equipment Financing for FF&E and Systems
Equipment financing funds mattress replacements, lobby renovations, laundry equipment, PMS software, key-card systems, and kitchen upgrades without tying up your cash reserves. Lenders advance 80 to 100 percent of invoice cost with the equipment itself as collateral. Approval hinges on two years of business tax returns and a current balance sheet. We help you bundle multiple vendor quotes into one loan request and coordinate timing so installations finish before your high season.
### Bridge Loans and Working Capital
Bridge loans cover time-sensitive opportunities like acquiring a distressed property before auction or funding a PIP while you arrange permanent financing. Working capital lines smooth the gap between January's 38 percent occupancy and March Spring Break. We document your forward bookings and historical monthly revenue patterns to show lenders your ability to repay when occupancy rebounds.
We turn fragmented hotel financial records into a complete loan package by organizing STR reports, franchise documents, capital expenditure lists, trailing occupancy data, and tax returns into the specific format each lender requires before submission.
### Your Documentation Checklist
1. Trailing twelve months of Profit & Loss and balance sheet (QuickBooks or accountant-prepared). 2. Three years of business tax returns (1065, 1120, or 1120-S with K-1s). 3. STR report or Smith Travel Research competitive set analysis for your submarket. 4. Franchise agreement and current brand inspection reports if flagged. 5. Personal financial statement and three years of personal tax returns for each owner holding 20 percent or more. 6. Capital expenditure schedule detailing deferred maintenance and planned improvements. 7. Property insurance declarations page showing replacement-cost coverage.
We review every document for completeness, flag missing signatures or outdated financials, and explain gaps before a lender sees them. If your accountant uses cash-basis reporting but the lender requires accrual, we coordinate the conversion. If your franchise just issued a PIP, we incorporate it into the use-of-funds narrative so the loan amount covers every requirement.
A couple owns a 52-room independent property on South Jack Kultgen Expressway. They want to join the Marriott TownePlace Suites franchise, which requires $1.2 million in renovations and a new sign pylon. Their current mortgage sits at $1.8 million with a regional bank at a rate they can improve. They need cash for the franchise conversion and lower monthly debt service.
We arranged a commercial real estate loan refinancing the existing mortgage and funding the renovation in one package. Documentation included the Marriott franchise application, architect renderings, contractor bids, trailing STR data showing 71 percent occupancy, and a proforma projecting post-conversion ADR increases. The loan closed in 47 days. The couple used our checklist to stage documents weekly, avoiding last-minute scrambles and appraisal delays.
Serving the Waco area
We know which lenders fund which kinds of Waco businesses, and we position your file where it fits.
One local broker, many lenders, and no cost to apply.
Common questions
Why Waco owners trust Scarletgate Financial
Talk to a local advisor and get matched to the right program, no obligation.