California Hotel Loans
RAD Capital Group is a San Diego-based commercial real estate capital advisory firm that arranges hotel acquisition, bridge, and permanent financing for hospitality properties throughout California. We structure debt and equity solutions from $4 million to $500 million, including SBA 504/7(a), CMBS, bridge loans, mezzanine financing, and preferred equity — sourced through a network of 50+ direct lenders nationwide.
California Hotel Loan Rates & Programs (2026)
California hotel loan rates currently range from 7.0% to 11.0%, depending on loan type, flag affiliation, and asset stabilization.
| Program | Indicative Rate | Detail |
|---|---|---|
| CMBS / Conduit | 7.0% – 8.5% | Stabilized, flagged hotels — non-recourse, up to 65–70% LTV |
| Conventional Bank | 6.75% – 7.75% | 20–25 year amortization, 5–10 year terms |
| Bridge Loans | 9% – 11% | Acquisition, repositioning, PIP execution — close in 2–4 weeks |
| SBA 504 / 7(a) | Below-market fixed | Owner-operator purchases, 10% down typical |
| Mezzanine & Preferred Equity | Custom structure | Deals $10M–$250M+, filling the gap between senior debt and sponsor equity |
Flagged hotels (IHG, Marriott, Hilton) typically receive 75–150 basis points better pricing than independent properties, due to brand-level demand generation and centralized reservation systems.
Why Hotel Financing Is Different From Other Commercial Real Estate
Hotels generate revenue daily rather than through long-term leases, so there is no rent roll to underwrite. Lenders instead evaluate:
- RevPAR — Revenue Per Available Room — the primary performance benchmark.
- ADR & Occupancy — Average Daily Rate and occupancy trends, typically trailing 12–24 months.
- STR / STAR Comp Set — How the property performs against its direct competitive set.
- Franchise & PIP — Franchise agreement terms and any pending Property Improvement Plan requirements.
- NOI Margin — USALI-format operating statements and stabilized NOI margin.
Markets We Serve in California
RAD Capital Group has direct transaction experience financing and advising on hotel assets across California.
Los Angeles County
Pasadena, Burbank and the greater LA hospitality corridor.
San Diego County
Our home market — deep local lender relationships across coastal and downtown assets.
Sacramento
Central Valley hospitality assets along the I-5 / I-80 corridor.
Recent California Hotel Financing Transactions
Holiday Inn Express & Suites — Pasadena, CA
Loan advisory on a 93-key, IHG-flagged hospitality asset acquisition.
Representative transaction. Additional closed deals available on request.
Loan Programs We Arrange
1. Bridge Loans
Fast-close, flexible-term financing for acquisitions, repositioning, or pre-stabilization properties. Typical close: 2–4 weeks.
2. SBA 504 & 7(a)
Below-market fixed-rate financing for owner-operators, typically 10% down.
3. CMBS / Conduit Loans
Non-recourse, fixed-rate financing for stabilized, flagged hotels.
4. Conventional Bank Loans
Regional and national bank financing for established operating histories.
5. Mezzanine Debt & Preferred Equity
Fills the capital stack gap between senior debt and sponsor equity on larger transactions.
6. PIP Financing
Bridge or supplemental capital specifically structured around Property Improvement Plan execution.
Why Work With RAD Capital Group
$700M+ Transaction Volume
Career volume across hospitality, multifamily and mixed-use CRE.
50+ Capital Sources
Bridge, CMBS, agency, SBA, life company and private debt — under one roof.
2026 Crexi Platinum & CoStar Power Broker
Recognized industry-wide for hospitality and CRE advisory.
- 15+ years of hospitality commercial real estate experience
- $700M+ in career transaction volume
- 2026 Crexi Platinum Broker and CoStar Power Broker recognition
- Direct relationships with 50+ capital sources spanning bridge, CMBS, agency, SBA, life company, and private debt lenders
- Deep underwriting expertise in USALI P&L analysis, STR/STAR competitive set benchmarking, and SBA 504/7(a) structuring
Get Started
Tell us about your hotel — acquisition, refinance, bridge, construction or PIP — and we'll structure the right capital stack from our 50+ lender network.
California Hotel Loans — FAQ
Borrower-advocate capital advisory · San Diego, CA · Nationwide execution