This Tealwood Funding Group page covers hotel and motel financing in Washington County, Utah: FF&E, PTAC units, laundry, franchise upgrades and renovation cash, with Census counts and an invented FF&E example. Property mortgages are not arranged.
At a glance
- Traveler accommodation, Washington County, UT
93 employer establishments with 2,138 paid employees (CBP 2023)
- Hotels (except casino hotels) and motels, Washington County, UT
87 employer establishments (CBP 2023)
- Traveler accommodation payroll, Washington County, UT
$62.1 million (CBP 2023)
Hotel Loan Programs for St. George, UT Motel Operators Planning Franchise Upgrades
Hotel loan programs for franchise upgrades split the cost into what can be financed as equipment and what cannot. Furniture, fixtures and equipment (FF&E), PTAC units, televisions, laundry machines and fitness rooms are equipment. Corridor carpets, bathroom tile and exterior work are renovation costs.
Washington County, UT had 93 traveler accommodation establishments with 2,138 paid employees and $62.1 million in annual payroll in 2023; 87 of them were hotels (except casino hotels) and motels (County Business Patterns).
Tealwood Funding Group does not arrange hotel mortgages or property refinancing. Those go to commercial real estate lenders.
Nonemployer Statistics counted 135 traveler accommodation businesses without paid employees in Washington County, UT in 2024, a separate program from the employer count. Small inns and lodging operators without staff can still request equipment financing.
Hotel Loan Default: Cash Reserves St. George, UT Hotel Owners Plan Around a Renovation
Default on a hotel loan can start with cash, not with the loan itself: a renovation that runs long, rooms off the market, and payroll that does not stop. Planning a cash reserve before the work begins is one safeguard.
A partner reviewing a renovation request reads occupancy and average daily rate by month, so it can see the cash the property produces while some rooms are closed.
Read the loan agreement for covenants and what counts as a default. Have your own attorney review it.
Covenants in hotel loans may set a minimum debt service coverage ratio, measured each year. A renovation that lowers revenue for a season can test that ratio, so ask the partner how it is measured during construction.
Hotel Renovation Financing When a Washington County, UT Motel Needs Room Refreshes
Hotel renovation financing for a motel room refresh is often done floor by floor, so some rooms keep earning. The FF&E for each floor can be financed as equipment; the soft goods and finishes as part of a term loan.
Illustration only, invented figures: a 48-room motel replaces FF&E at $6,300 a room and PTAC units at $1,180 a room. That is $302,400 plus $56,640, or $359,040 (our arithmetic). Spread across 72 months at an invented annual rate of 10.5%, that comes to roughly $6,742 per month (our arithmetic).
The franchise upgrade article goes through the documents and offer comparisons.
Ask the brand whether used or refurbished FF&E meets its standards. If it does, the cost per room can fall, and the financed amount with it.
Partners may lend a smaller share of the cost on soft goods such as bedding and drapes, which have little resale value. Hard goods such as casegoods and PTAC units carry more.
Hotel Loans for Washington County, UT Hotel Owners: Room Refreshes Floor by Floor
Hotel owners in Washington County, UT plan room refreshes around occupancy. Closing a floor in a slower month costs fewer room nights than closing it in a busy one; the owner's own occupancy records show which months those are.
Working capital can carry payroll and fixed costs while the floor is out of service.
Brand standards letters set deadlines. Bring the letter, the property improvement plan if there is one, and the contractor's bid.
Some property improvement plans allow the work to be phased over several years. If the brand allows it, phasing reduces the amount financed at one time and the number of rooms out of service.
Hotel Equipment Financing Companies and Lenders for St. George, UT Laundry and PTAC Units
Hotel equipment financing companies and lenders finance commercial laundry machines, PTAC and HVAC units, televisions, kitchen equipment for a breakfast area, and fitness room equipment. Each item has a vendor quote and a resale market.
Laundry equipment runs every day, so its age shows up early in repair bills. Ask whether installation, venting and plumbing are inside the quote.
Related pages: restaurants, equipment financing, term loans, working capital, all industries, and the St. George, UT page.
Housekeeping carts, vacuums and breakfast-area appliances are smaller items that can join the laundry purchase on one equipment request.
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