New Construction Financing Powers Boutique Hotel & Restaurant Launch
Introduction
Unlocking destination development through hospitality-focused capital strategy. Cornovus Capital arranged $4,250,000 in customized construction financing for the development of a premier 26-room boutique hotel and a 225-seat upscale restaurant in the Northeastern U.S. The borrower, a hospitality development group with regional experience, sought to bring a new destination asset to life—merging high-end lodging, fine dining, and an existing event space into a single branded concept.
This ground-up development represented a multi-use hospitality asset designed to serve both tourism and local demand while revitalizing a key downtown corridor. The project required specialized financial structuring to accommodate complex zoning approvals, evolving construction costs, and operational readiness at launch. Cornovus Capital designed a full-capital solution that balanced near-term construction funding with long-term debt stability—allowing the borrower to execute confidently in an unpredictable development environment.
Challenge
Overcoming zoning, design, and development hurdles. This transaction presented multiple challenges that required strategic coordination across zoning, design, and financing execution:
- Zoning complexity involving hospitality, restaurant, and entertainment uses
- Escalating construction costs due to supply chain disruptions
- Stakeholder alignment among developers, architects, and brand partners
- Financing structure required to support seasonal cash flow variability
- Working capital needed for soft launch, staffing, and initial operations
Solution
Flexible construction package positioned the project for long-term success. Cornovus Capital delivered a tailored financing solution built around the unique needs of a destination hospitality project:
- $4.25M total financing package covering construction, FF&E, and working capital
- 18-month interest-only construction phase with automatic conversion to 5-year term
- 25-year amortization schedule supporting long-term sustainability
- Flexible draw structure with reserves for timeline or cost overruns
- Inclusion of working capital for pre-opening staffing and marketing
- Terms aligned with projected seasonal and event-based revenue cycles
Results
Empowering the borrower to launch a destination asset with long-term financial sustainability.
- Full project funding secured with timeline certainty and construction coverage
- Loan structured to match expected revenue cycles for debt stability
- Boutique hotel, restaurant, and venue launched on schedule
- Early bookings and local engagement strengthened asset performance
- Strong operational foundation established for future scalability and refinancing
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 you’re acquiring a business, buying out a partner, expanding operations, or combining real estate into a growth plan—we deliver capital strategies designed for certainty and efficiency.
What Sets Us Apart?
• Advisory expertise across business stages and sectors: We structure financing for acquisitions, expansions, partner buyouts, and practice ownership transitions.
• Innovative capital structuring: We integrate seller notes, working capital, CapEx, and goodwill financing into efficient, customized capital stacks.
• Lender alignment and competitive terms: We match each transaction with lenders who understand your industry—ensuring smooth approvals and favorable terms.
• End-to-end execution and advisory support: From deal modeling and loan packaging to lender communication and closing, we manage the entire process to ensure successful outcomes.
For business owners, professionals, and entrepreneurs seeking flexible SBA financing, Cornovus Capital delivers strategic insight, execution certainty, and long-term support.
Contact Cornovus Capital
At Cornovus Capital, we simplify the financing process with tailored solutions, competitive loan terms, and expert advice. Whether you’re acquiring, refinancing, or developing a property, we’re here to help you succeed.
📧 [email protected]
📞 513-653-4246
🌐 CornovusCapital.com