A Southeast-focused development firm needed construction financing for a 122-room extended-stay hotel in the Four Corners area of Central Florida, a submarket built around short-term corporate and leisure travel demand near the region's theme parks and business corridors. The project carried a projected stabilized value of roughly $19 million against a requested construction loan of $9.2 million, a conservative basis that gave lenders room to underwrite even in a property type many were still treating carefully.
Hospitality construction has been one of the harder categories to finance through 2026: lenders remain selective about ground-up hotel risk, and extended-stay product in particular requires underwriters comfortable with a hybrid of multifamily-style occupancy assumptions and hotel-style operations. Despite that caution, five lenders — a mix of community banks and credit unions — submitted competitive term sheets on the deal.
Deal snapshot
| Metric | Terms |
|---|---|
| Property type | Hospitality, extended-stay (122 rooms) |
| Deal type | New construction |
| Market | Four Corners, Central Florida |
| Loan amount | ~$9.2M |
| Stabilized value | ~$19M |
| Rate | SOFR + 2.35% |
| Term | 10 years |
| Amortization | 25 years |
| LTC | 65% |
| Lender fee | 0.50% |
| Competing term sheets | 5 |
| Recourse | Limited |
Why it closed
The sponsor's basis was conservative relative to projected costs, which gave lenders a cushion most were not finding on more aggressively modeled ground-up hotel deals elsewhere in the market. Running the deal to a broad slate of community banks and credit unions, rather than a single relationship lender, surfaced five formal offers in a category where many sponsors are getting one or none. That competitive tension — not a uniquely favorable rate environment — is what produced a variety of aggressive terms.
This deal is one of the transactions underlying the average 6.89% rate and 70.5% average LTC that Gumption's platform recorded across all new construction loans in Q2 2026, the highest average rate of any loan type in the quarter, and still one where lenders kept showing up. See the Q2 2026 CRE Lending Report for the full construction-lending data set.
Have a hospitality construction deal to finance? Submit your deal to Gumption's lender network and receive multiple competing term sheets in just days.