Driftwater Loans, a small-business funding service in Fort Myers, Florida, explains how to finance a hotel project in Lee County beyond the mortgage: renovation and FF&E financing, working capital during the work, buying a motel business and the records partners read.
The Short Answer for a Lee County, FL Hotel
Finance a hotel project in two parts. The land and building, whether bought or built, are real estate and go to commercial mortgage or construction lenders, which Driftwater does not arrange. Everything inside, including furniture, fixtures and equipment (FF&E), room renovations, laundry and kitchen equipment, and the working capital that carries the property during the work, can be financed as business funding. Price the project room by room, split the request by type of cost, and bring room revenue, tax returns and quotes.
The hotel and motel page sets out what partners fund.
Hotels, Motels and Inns in Lee County, FL Census Data
Lee County, FL had 105 hotels and motels with paid employees in 2023, employing 3,762 people with $146 million in payroll (County Business Patterns 2023, NAICS 7211), about 35.8 employees per property (our arithmetic). Nonemployer Statistics, a separate program, counted 228 lodging businesses without paid employees in 2024. The wider lodging and food service sector had 1,597 employer establishments (CBP 2023).
How to Finance a Hotel Project? What Lee County, FL Owners Should Know
Partners reading a hotel project start with the property's own performance: room revenue by month, occupancy, average daily rate and the tourist development tax returns that confirm the revenue. Then they read the project: quotes for each item, the renovation schedule, rooms out of service and for how long, and, for a franchised hotel, the brand's required improvement plan. A project tied to a brand deadline has a fixed date, which shapes the timing of the request.
The tourist development tax guide explains those returns.
What Are FF&E Costs? The Short Answer for Lee County, FL
FF&E stands for furniture, fixtures and equipment: beds and headboards, case goods such as desks and dressers, seating, lighting, carpet and window treatments, televisions, room air conditioners, and common-area furniture. FF&E wears out on a cycle and is replaced in batches, which suits equipment financing because the items can secure the loan. Construction work behind the walls, such as plumbing or electrical, is part of the renovation rather than FF&E.
Worked Example: Pricing a Room Refresh
Illustration only, invented figures: a 60-room hotel replaces FF&E at about $9,500 per room, a total of $570,000. In this invented example, financed over 84 months at 9% a year, the payment is about $9,171, or about $153 per room per month. In this invented example, 12 rooms are out of service at a time for 30 nights at a $140 average rate, about $50,400 of room revenue the property does without during each phase.
In this invented example the request has two parts: the FF&E on an equipment loan, and working capital or a line to carry payroll during the phases when revenue dips.
How to Finance a Hotel? A Fort Myers, FL Walk-Through
- Separate the project into FF&E, renovation work and working capital.
- Get quotes for each FF&E item and contractor estimates for the work.
- Plan the phases: which rooms close when, and for how long.
- Export room revenue, occupancy and rate reports, and gather tourist development tax returns.
- Gather bank statements, the latest tax return and any franchise improvement plan.
- Prefer writing? Send the online request; or dial (239) 453-0635.
How to Finance a Motel? Answers for Fort Myers, FL Owners
Motels follow the same logic at a smaller scale. A set of room air conditioners, new mattresses or a laundry upgrade can each go on an equipment loan; a full refresh or new exterior corridors may suit a term loan. Smaller properties without a property management system can show revenue through bank deposits, booking platform statements and tax returns.
How to Buy a Motel?
Buying a motel can mean buying real estate, which is a commercial mortgage that Driftwater does not arrange. Where the buyer leases the building, or where the business is bought separately from the property, partners can fund the business side: the operating business, its FF&E and working capital for the first months. Partners read the seller's revenue and tax history, the purchase agreement, the lease if any, and the buyer's lodging experience.
How to Buy a Motel Business? Practical Notes for Lee County, FL
- Get at least two years of room revenue, occupancy and rate reports.
- Match the revenue to tourist development tax and sales tax returns.
- Inspect the FF&E and budget its replacement.
- Read any franchise agreement and its transfer conditions.
- Set aside working capital for the motel's first months under your name.
For the wider county picture, see Lee County, FL employer figures.
By Driftwater Loans · Updated
