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Considering opening up an extended stay hotel? Hotel loans from experienced hospitality lenders can help you make this a reality. Whether you’re interested in new construction or converting older properties into extended stay options, you need creative and affordable business loans for your hotel. 

There are several reasons why many in the hospitality industry are getting into the extended stay market. It’s been experiencing a lot of growth in recent years, so it may be a lucrative investment.

Hotel Loans Help You Open Extended Stay Options

Extended stay hotel room with kitchenette, sitting area, and separate bed area constructed with the help of hotel loans.
Hotel loans help you create extended stay rooms with all the amenities to attract long-term guests.

When starting on a new extended stay hospitality venture, you may need hotel loans to finance some of the costs. For example, if you’re constructing a new hotel, you may need a construction loan to get started. On the other hand, when renovating an existing building to turn it into an extended stay hotel, then bridge or mezzanine financing may make more sense. 

Direct hotel lending is a great option for opening a new extended stay hotel property. Hospitality lenders offer experience and specialized industry knowledge. So, you can sit down with one of our specialists to design creative capital solutions for your project. 

Working with hotel financing specialists can help you determine the right options for your new investment. We’re here to help throughout the process to streamline lending arrangements. 

Why Extended Stay?

Why are so many hotel owners taking out hotel loans to create extended stay properties? First, they’re experiencing a lot of growth! The market for extended stay has been steadily growing in recent years. Extended stays are often competing with vacation rentals and offer a more home-away-from-home experience. 

Previously, these properties were mainly marketed toward business travelers. However, many people are changing the way they travel. For example, traveling with children makes having a kitchenette desirable. Also, many people are taking longer vacations to really explore. 

Also, because travelers typically stay in extended stays for longer periods, anywhere from five days to a month or more, occupancy rates tend to be much higher than traditional hotel properties. This may mean more steady income from your extended stay hotel. 

They also typically have lower overhead costs for labor. Most extended stays have fewer labor-intensive amenities like food service and laundry service. This can help reduce recurring operating costs for labor. Therefore, if there’s demand in your market, it may make sense to go for an extended stay over a traditional hotel. 

Just keep in mind that extended stay hotels may not flourish everywhere. Typically these are better suited for secondary and tertiary markets where a lot of corporate travel occurs. So, be sure to do your research into the market for extended stay!

Direct Hotel Lending from Our Creative, Strategic Specialists

When you need hotel loans, choose our team at STONEHILL. We’re a market leader for hotel lending and can help you find financing solutions to meet your needs. Our specialists have helped hundreds of properties, big and small, obtain their objectives by offering the financing they need. Contact us now to learn more and get financing today!