Hotel Bridge Loan | Holiday Inn Express Reposition & Renovation
IHG Franchise • Dual-Tranche CapEx Facility • Bridge-to-Permanent Strategy
Hotel bridge loan overview
Hotel bridge loan structured to support a Holiday Inn Express reposition and renovation with a defined path to stabilization. Cornovus Capital arranged a $5.0 million hospitality bridge facility combining a senior mortgage tranche with a dedicated CapEx draw component to fund IHG PIP scope, FF&E upgrades, and property improvements while preserving operating liquidity during the transition period.
The execution required lender alignment on transitional hotel underwriting, controlled renovation draws, and title cleanup at closing. Cornovus Capital coordinated underwriting, third-party diligence, and lender execution to deliver time-sensitive financing aligned with franchise requirements and renovation timelines.
The bridge structure supported near-term repositioning and a clear bridge-to-permanent strategy following renovation completion and operating performance recovery.
Challenge
- Existing debt structure misaligned with renovation timeline
- IHG PIP and FF&E scope requiring controlled draw funding
- Multiple liens and title cleanup required at closing
- Need for bridge capital with operational flexibility during renovations
- Execution risk tied to timing, franchise compliance, and cash flow
Solution
- $4.0MM mortgage tranche secured by land and improvements
- $1.0MM CapEx tranche secured by FF&E and funded via draws
- Interest-only bridge structure designed for transition execution
- Escrowed renovation funding aligned with lender-approved budget
- Franchise compliance and brand continuity maintained
The structure balanced lender protection with operational realities, allowing renovations to proceed without disrupting hotel performance.
Results
- Renovation and FF&E upgrades completed under lender-approved budget
- IHG Holiday Inn Express brand standards satisfied
- Hotel remained operational throughout the renovation period
- Improved operating performance and exit readiness
- Bridge-to-permanent financing path established
Explore additional hotel and commercial real estate case studies in our Transaction Highlights archive.
Related capital programs
Explore additional hospitality and commercial real estate financing options: Bridge program, CMBS program, LifeCo program, Multifamily program, Conventional business loan program, and SBA 7(a) program.
About Cornovus Capital
With over 70 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 across multiple market cycles.
Our expertise spans CMBS and LifeCo financing, private capital solutions, structured debt strategies, SBA 7(a) and 504 loans. By focusing on certainty of execution, disciplined underwriting, and closing assurance, we guide businesses and investors through complex capital markets environments, securing financing aligned with long-term ownership and investment objectives.
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Connect with Cornovus Capital
Exploring financing options for commercial real estate or business finance? Cornovus Capital delivers institutional execution — combining underwriting precision, credit modeling, and lender coordination to ensure transparency, speed, and certainty from term sheet to closing. Cornovus Capital delivers structured solutions, execution precision, and efficiency from application to closing.
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