Hotels
PIP bridge
A hotel PIP bridge is a short-term, floating-rate, interest-only loan that funds the purchase of a hotel and the franchise-required property improvement plan (PIP), releasing renovation money against completed work, and is repaid by a permanent loan such as CMBS or SBA 504 once the hotel stabilizes.
Key facts
Figures as of 2026-10-31. Program rules change by notice, so an advisor confirms current terms with lenders before you rely on any figure.
| Item | Figure | Source and date |
|---|---|---|
| Max loan-to-cost | 70% | Corin sizing estimate; as of 2026-10-31 |
| Minimum debt yield | 8% | Corin sizing estimate; as of 2026-10-31 |
| Typical term | 30 months | Corin sizing estimate; as of 2026-10-31 |
| Indicative spread | SOFR + 4.75 points | Corin sizing estimate; as of 2026-10-31 |
| Lender fee / exit fee | 1.0% / 0.5% | Corin sizing estimate; as of 2026-10-31 |
| Typical close | 10–21 days after a complete file | Corin sizing estimate; as of 2026-10-31 |
Sizing a PIP bridge
Lenders size to cost, not just value, because a hotel under renovation has depressed income. The loan funds the acquisition and a renovation holdback sized to the franchisor's PIP, with the bridge lender releasing holdback funds against completed work under its own process.
Corin arranges the loan and has no role in the lender's holdback process: it does not disburse, inspect or hold any funds.
Planning the exit
The bridge exists to reach a permanent loan. We test the takeout up front: stabilized NOI must support CMBS or SBA 504 proceeds large enough to repay the bridge. A bridge priced and sized without that test is a bet on the market.
- CMBS takeout once RevPAR and NOI season after the PIP
- SBA 504 takeout for owner-operators
- Refinancing into a bank loan
Frequently asked questions
What is a PIP?
A property improvement plan is the list of renovations a hotel franchisor requires to keep or obtain the brand. Missing it can put the franchise at risk, which is why lenders examine it closely.
How fast can a PIP bridge close?
Many close in 10–21 days after a complete file, subject to lender approval, appraisal, title and diligence. Timing is not guaranteed.
Is a PIP bridge recourse?
Private bridge lenders often require some recourse or completion guaranties. Terms vary by lender and are negotiated case by case.
Related programs
- Hotel CMBSFixed-rate, non-recourse conduit debt for stabilized hotels.
- SBA 504 hotel loansBank first lien plus a 25-year fixed CDC debenture for owner-operated hotels.
- Private bridge loansShort-term floating debt from private lenders and debt funds.
- Hotel to senior living conversionAcquisition and conversion bridge for turning a hotel into licensed senior living.
- Hotel financingSBA, CMBS and bridge options for hotel owners and buyers.
Talk through your deal with an advisor
Send the basics and a licensed Corin advisor reviews which programs and lenders may fit, or size the loan yourself first.