Fund mandatory franchise Property Improvement Plans, preserve your brand flag, and improve RevPAR performance. Bridge loans with renovation holdbacks structured specifically for hotel owners.
Orlando Hotel PIP Refinance
Midscale hotel facing mandatory $4.2M PIP with maturing CMBS. 80% LTC bridge, renovation holdback, $2.8M interest reserve. RevPAR: $54 → $78 post-renovation.
A Property Improvement Plan (PIP) is a mandatory renovation requirement issued by a hotel franchisor (Marriott, Hilton, IHG, Wyndham, etc.) as a condition of franchise renewal or property transfer. PIPs typically cost $5,000–$30,000 per key and must be completed within a specified timeframe — or the franchise flag is terminated.
Fintek Capital structures bridge loans specifically for PIP scenarios, with renovation holdbacks released as work is completed and verified by an inspector. This ensures funds are available throughout the renovation without paying interest on undrawn capital.
How It Works
We analyze the franchisor's PIP letter, scope of work, timeline, and cost estimates to structure the right loan amount.
Bridge loan covers existing debt payoff + PIP renovation budget + interest reserve. Holdback funds released per milestone.
Renovations complete, RevPAR improves, franchise flag preserved. Bridge loan exits into permanent CMBS or agency financing.
Expert Contact
Director of Hospitality Finance · 15 years in hotel bridge lending · $850M+ in hospitality transactions
"The critical factor for PIP financing is ensuring the renovation budget aligns with the property's RevPAR trajectory. Fintek Capital structures PIP bridge loans with renovation holdbacks that protect both borrower and lender throughout the improvement process."