The Ultimate Guide To Financing Your Next Hotel Deal | Suraj Desai E30

May 6, 2025

Suraj Desai, a hospitality finance expert leading the practice at Black Bear Capital Partners, shares invaluable insights on hotel financing. He dissects crucial funding options, from SBA loans to CMBS lending, and clarifies why some banks are hesitant now. Suraj emphasizes the importance of good collateral and strong sponsorship while navigating complex financing landscapes. Listeners will learn strategic uses of bridge and mezzanine loans, and the differences between predominant SBA loans, making this a must-listen for aspiring hotel investors.

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INSIGHT

Good Collateral and Sponsorship

Good collateral ideally means a cash-flowing asset in a known, active market with recent capital improvements.
Good sponsorship requires strong liquidity, net worth, local ties if possible, and a track record of executing similar projects.

ADVICE

Bridge and CMBS Loan Insights

Use bridge loans for transitional, value-add hotel deals needing fast capital and shorter terms (1-3 years).
Consider CMBS for large loans ($5M+) especially with GPLP structures to avoid personal guarantees and scale faster.

ADVICE

Mezzanine Debt as Leverage

Use mezzanine debt to fill equity gaps and maintain full ownership without diluting shares.
Expect higher interest rates (15-18%) making mezzanine a strategic but costly option for confident sponsors.

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In this episode of the Hotel Investor Playbook, we sit down with Suraj Desai, a hospitality finance expert who has helped close hundreds of hotel deals, to unpack everything you need to know about financing your next acquisition, renovation, or ground-up development.

Suraj breaks down the full capital stack, from SBA 7a and 504 loans to bridge, CMBS, and mezzanine debt. He explains which types of financing work best for boutique hotels vs. flagged assets, why banks are pulling back, and what it really takes to get a deal funded in 2025.

We also cover:

The difference between good collateral and great sponsorship (and why you need both in today’s market)
How to use bridge and mezzanine loans to scale faster, even with limited equity
The truth about SBA loans: how they work, who they’re for, and the major difference between 7a and 504
What CMBS lenders really look for (and why they’re not always the bad guys)

If you’re serious about buying your next hotel or just want to understand what lenders are looking for right now, this episode is a must-listen. It’s a masterclass in real-world hotel financing.

About Suraj:

Suraj Desai leads the hospitality practice at Black Bear Capital Partners, a nationally recognized capital markets firm that has closed over $28 billion in commercial real estate financing. With more than a decade of experience and over $800 million in hospitality debt and equity transactions, Suraj specializes in structuring creative and competitive financing solutions for boutique hotels, lifestyle assets, and independent operators. His team brings deep lender relationships across all major platforms including banks, credit unions, SBA, non-recourse lenders, bridge lenders, and mezzanine providers. Suraj is widely regarded as one of the go-to brokers for hospitality financing and has helped secure funding for properties ranging from $3 million to $50 million nationwide.

Connect with Suraj:

Website: https://bbcp-llc.com/

Email: sdesai@bbcp-llc.com

Phone: 773-314-7659

Linkedin: https://www.linkedin.com/in/suraj-desai-4276ba24

Connect with Mike and Nate:

Invest with Mike & Nate: malama-capital.com/invest
Submit a deal: https://www.malama-capital.com/deal-submission
Instagram: @the_hotel_investor_playbook
Contact Us: info@hotelinvestorplaybook.com