Can a full-service downtown Toronto hotel get conventional financing?

Yes, provided the property has two to three years of stabilized operating history, a going-concern appraisal supporting the value, and NOI that services debt at a 1.25x-1.40x DSCR. Institutional lenders typically size these loans at 50%-65% LTV, higher for strong flagged assets, with terms of one to ten years and 15-25 year amortizations.

How does a downtown boutique or independent hotel finance differently than a flagged property?

Unflagged and independent hotels usually go to secondary institutional or private lenders rather than the major bank hotel desks, since franchise brand support and standardized reporting reduce perceived risk for lenders. Pricing is higher and leverage is more conservative, but approvals can move faster and terms are more flexible.

Do lenders care about convention and event demand downtown?

Very much so. Underwriters look closely at group and convention booking pace, corporate negotiated rates, and citywide event calendars when normalizing RevPAR and NOI for a downtown Toronto hotel, since a meaningful share of revenue can be tied to a small number of large groups.

City of Toronto

Hotel financing in Toronto

Acquisition, refinance, renewal, and construction/PIP financing for hotels across the City of Toronto - full-service and convention hotels downtown, select-service properties near the Gardiner and DVP, and boutique conversions in midtown and the King West and Queen West corridors.

Get started Text (647) 342-1355 Or call

What we finance in Toronto

Hotel financing Hotel refinancing Construction & PIP financing Bridge financing

Neighbourhoods and corridors we cover

Downtown & the Financial District
Harbourfront & the waterfront
King West & Queen West
Midtown & Yonge–Eglinton
Scarborough hotel corridor
Etobicoke & the Queensway

What makes Toronto hotel files different

Downtown Toronto files carry the widest range of asset types we see - large full-service and convention hotels with meeting space and F&B, select-service flags a few blocks off the core, and independent boutique conversions of older buildings. Lenders weigh convention and event demand, corporate travel patterns, and STR competition differently by submarket, and going-concern appraisals need a normalized NOI that separates real estate value from brand and management value.

Full-service and convention hotels, branded select-service properties, and independent boutique hotels converted from older commercial or heritage buildings are the most common files we place inside the city.

Toronto hotel financing questions

Can a full-service downtown Toronto hotel get conventional financing?: Yes, provided the property has two to three years of stabilized operating history, a going-concern appraisal supporting the value, and NOI that services debt at a 1.25x-1.40x DSCR. Institutional lenders typically size these loans at 50%-65% LTV, higher for strong flagged assets, with terms of one to ten years and 15-25 year amortizations.
How does a downtown boutique or independent hotel finance differently than a flagged property?: Unflagged and independent hotels usually go to secondary institutional or private lenders rather than the major bank hotel desks, since franchise brand support and standardized reporting reduce perceived risk for lenders. Pricing is higher and leverage is more conservative, but approvals can move faster and terms are more flexible.
Do lenders care about convention and event demand downtown?: Very much so. Underwriters look closely at group and convention booking pace, corporate negotiated rates, and citywide event calendars when normalizing RevPAR and NOI for a downtown Toronto hotel, since a meaningful share of revenue can be tied to a small number of large groups.

Other areas we serve

Helpful next steps

Related services in our hotel financing network

Private & bridge hotel lending

When a hotel or motel loan can't be placed with a conventional lender - a maturity default, a tight closing window, or a property mid-repositioning - we work with a network of private and institutional bridge lenders across Toronto, the GTA and Ontario who lend on the equity and going-concern value of the asset. Call or text (647) 342-1355 for a fast, confidential review - no cost and no obligation.