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$1.8M SBA 7a Financing for Wyndham Franchise Hotel Acquisition & Repositioning

Introduction

Unlocking value through strategic financing. Cornovus Capital placed $1.8 million in SBA 7a financing to facilitate the acquisition and repositioning of a Wyndham-branded franchise hotel in a high-demand metropolitan market. The borrower, a seasoned hospitality investor, required a tailored capital solution to fund the acquisition, mandated Property Improvement Plan (PIP), and furniture, fixtures, and equipment (FF&E) procurement, ensuring full brand compliance.

Facing tightened credit conditions and lender caution toward hospitality renovations, the borrower required a structured financing strategy that optimized capital allocation, debt leverage, and liquidity to support long-term asset repositioning. Cornovus Capital conducted a targeted capital markets process, identifying the SBA 7a loan as the optimal structure to achieve cost efficiency and financial flexibility while ensuring certainty of execution.

Challenge

Structuring a capital-efficient hospitality acquisition. A hospitality investor sought financing to acquire and reposition a Wyndham-branded franchise hotel in a high-traffic metropolitan area. The property had strong revenue potential but required a significant capital infusion to execute a franchise-mandated PIP and enhance operational efficiency. The borrower needed a financing solution that would:

  • Fund the acquisition, mandated PIP, and FF&E procurement
  • Minimize upfront equity requirements while preserving liquidity
  • Provide financial flexibility to support a seamless renovation process

Additionally, traditional lenders were hesitant due to the capital-intensive nature of the transaction, requiring a financing approach that maximized leverage while maintaining strong financial positioning.

Solution

Structured $1.8 million SBA 7(a) loan with targeted capital allocation to finance acquisition, renovations, and FF&E procurement, ensuring liquidity and execution certainty.

Market analysis and financial planning:

  • Conducted a market study to evaluate demand drivers, occupancy trends, and revenue projections
  • Developed a detailed proforma model to assess investment feasibility and operational stability

Loan structuring and capital allocation:

  • Secured a $1.8 million SBA 7(a) loan to finance the acquisition and renovations
  • Structured financing to optimize debt leverage while maintaining operational cash flow stability

PIP budgeting and FF&E procurement:

  • Developed a comprehensive PIP budget, ensuring full compliance with brand standards and long-term asset value enhancement
  • Assisted with cost-effective FF&E procurement, balancing quality, efficiency, and brand compliance

Execution support and advisory services:

  • Provided franchise approval guidance, ensuring compliance with brand requirements
  • Delivered strategic transaction support, facilitating a smooth transition and renovation process

Results

Successfully repositioned a high-potential hospitality asset, securing long-term revenue stability and capital efficiency through a structured financing strategy.

  • Optimized financing package: Structured SBA 7(a) loan provided maximum leverage while preserving working capital
  • Successful property repositioning: All PIP-mandated renovations were completed, enhancing brand compliance, guest experience, and operational efficiency
  • Strategic cost management: FF&E procurement was optimized for efficiency, ensuring cost-effective implementation while maintaining brand standards
  • Revenue growth and financial stability: The borrower maintained strong financial flexibility throughout the transition, positioning the hotel for increased revenue and operational success

About Cornovus Capital

With over 60 years of combined experience, Cornovus Capital is a trusted financial partner specializing in business financing, commercial real estate lending, and hospitality funding solutions. We design customized capital strategies that help businesses acquire, expand, and optimize operations, ensuring long-term growth and financial stability.

Our expertise spans SBA 7(a) and 504 loans, CMBS and LifeCo financing, private capital solutions, and structured debt strategies. By focusing on certainty of execution and closing assurance, we guide businesses and investors through complex financial landscapes, securing funding tailored to their long-term objectives.

Why Partner with Cornovus Capital?

At Cornovus Capital, we understand that complex transactions require sophisticated financing solutions. Whether repurposing commercial assets, structuring high-leverage debt, or integrating municipal incentives, we deliver capital strategies designed for certainty and efficiency.

What Sets Us Apart?

  • Advisory expertise in adaptive reuse, commercial redevelopment, and business acquisitions
    We have a strong history of structuring financing for property repositioning, urban infill projects, mixed-use developments, and real estate acquisitions that support business expansion and operational stability.
  • Innovative capital structuring
    Our financing solutions include non-recourse construction loans, Mini-Perm transitions, and TIF-backed capital stacks.
  • Proven track record across diverse transactions
    Over the years, we have facilitated financing for a wide range of businesses, developers, and real estate investors, helping them secure the capital needed to grow and succeed.
  • End-to-end capital advisory and execution
    From initial underwriting to securing financing, we provide comprehensive transaction support to ensure seamless execution and certainty of funding.

Contact Cornovus Capital

For businesses seeking flexible financing solutions to support expansion, acquisition, or working capital needs, Cornovus Capital delivers expertise, efficiency, and certainty.

📧 [email protected]
📞 513-653-4246
🌐 CornovusCapital.com

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