Hotel loans in Billings finance acquisitions, renovations, refinancing, and seasonal working capital for lodging properties across the city and surrounding areas. Steelhaven Funding brokers SBA 7(a), commercial real estate, bridge, and equipment financing tailored to Montana's hospitality market, guiding hotel owners through every step from application to closing with full cost transparency.
Billings hotel operators face unique funding challenges: seasonal occupancy swings tied to summer tourism and oil-field activity, aging properties built in the 1970s-1990s boom, and lender caution around franchise agreements and property condition. Interstate 90 corridor properties near the airport and downtown historic hotels each require different underwriting approaches. We walk you through which loan structures match your property type, whether you operate a 40-room independent motel on Main Street or a 120-room flag property near the Metra.
Lenders scrutinize revenue-per-available-room (RevPAR) trends, debt-service-coverage ratios, and personal liquidity before approving hotel transactions. A broker's value lies in matching your specific situation to the right capital source before you waste months chasing programs that won't close.
Loan programs
Commercial real estate loans work when you need faster closings without SBA paperwork or when your property exceeds SBA size standards. Bridge loans solve timing gaps, such as when you need to close on a distressed hotel before permanent financing is in place. Equipment financing funds kitchen remodels, HVAC replacements, and laundry upgrades without tying up your acquisition capital.
Invoice factoring rarely applies to hotels, but a business line of credit covers payroll and utilities during the slower winter months when occupancy dips below 40 percent.
cover up to 90 percent loan-to-value for hotel purchases and major renovations, with terms stretching 25 years for real estate and 10 years for FF&E upgrades This program suits owner-operators buying existing franchised or independent properties in Laurel, Lockwood, or downtown Billings. We prepare the business plan, franchise documents, environmental Phase I coordination, and appraisal management so your file moves efficiently through SBA processing.
How it works
We start every hotel engagement with a cost-transparency conversation: what you'll pay in origination, third-party reports, and closing costs, so you can budget accurately from day one. No surprises at the closing table. We collect your trailing twelve-month profit-and-loss statement, property tax records from Yellowstone County, franchise disclosure documents if applicable, and recent occupancy reports, then submit to multiple lenders simultaneously.
Our office at 404 N 31st St, Billings, MT 59101 is a short drive from most Billings hotel properties, and we meet on-site when lenders require property walkthroughs. Call (406) 341-7733 to start your file.
Real estate
Consider a buyer targeting a 52-room independent hotel on Highway 3, two miles from the Yellowstone County courthouse. The seller asks $2.8 million. The buyer brings $420,000 down and needs $2.38 million financed. Trailing occupancy runs 62 percent annually, stronger in summer thanks to Yellowstone-bound travelers.
We structure this as an SBA 7(a) loan, securing 25-year amortization on the real estate and a 10-year note for furniture and fixtures. The buyer provides three years of tax returns, a franchise feasibility study (even though the property stays independent), and proof of hospitality management experience. Closing takes 90 to 120 days. The borrower knows every fee upfront and locks in predictable monthly payments.
Serving the Billings area
We know which lenders fund which kinds of Billings businesses, and we position your file where it fits.
One local broker, many lenders, and no cost to apply.
Common questions
Talk to a local advisor and get matched to the right program, no obligation.
