PACE Financing for Hotel Renovations and New Developments

PACE Financing Solutions for Hotel & Commercial Property Owners

Unlock long-term, low-cost capital for energy-efficient improvements, renovations, and sustainable property upgrades with Commercial PACE (C-PACE) financing.

Apply PACE Financing Toward:

Hotel Renovations
HVAC Replacements
Solar Energy Systems
Energy-efficient Upgrades
New Construction
Property Repositioning
Water Conservation Systems
Resiliency Improvements

What is PACE Financing?

Commercial Property Assessed Clean Energy (C-PACE) financing is an innovative funding solution that allows hotel owners, developers, and commercial real estate investors to finance energy-efficient and sustainability-focused improvements through a long-term property assessment. C-PACE financing is commonly used for hotels, hospitality properties, mixed-use developments, and commercial real estate projects looking to improve operational efficiency while preserving liquidity.

Unlike traditional financing, PACE funding is tied to the property rather than the borrower, allowing owners to secure long-term fixed-rate financing with repayment terms that may extend up to 30 years.

Why Hotel Owners Use PACE Financing

The hospitality industry continues to face rising operational costs, increasing energy demands, property improvement requirements, and stricter lending environments. Many hotel owners are now leveraging PACE financing to fill capital stack gaps while improving the long-term value and efficiency of their properties.

Benefits of PACE Financing for Hotels

Long-Term Fixed Rates
PACE financing typically offers long amortization periods with predictable fixed-rate payments, improving cash flow stability.
Preserve Equity
Reduce the need for expensive mezzanine debt or additional equity contributions.
Improve Cash Flow
Energy-efficient upgrades can lower utility and operational expenses over time.
Non-Recourse Financing
Many PACE programs provide non-recourse structures with flexible underwriting options.
Finance Up to 100% of Eligible Improvements
Cover qualified improvements without requiring large upfront capital investments.
Transferable Upon Sale
In many cases, the assessment remains with the property if ownership changes.

Eligible Improvements for PACE Financing

PACE financing can be used for a wide range of energy-efficient and resiliency improvements for hotels and commercial properties.

Common Eligible Upgrades Include:

HVAC Systems
Upgrade outdated heating and cooling systems to improve energy efficiency and guest comfort.
Solar Energy Systems
Install rooftop solar panels and renewable energy solutions.
LED Lighting
Reduce energy consumption throughout guest rooms, lobbies, and common areas.
Building Envelope Improvements
Improve insulation, roofing systems, windows, and energy performance.
Water Conservation Systems
Implement low-flow fixtures and sustainable water management systems.
EV Charging Stations
Add electric vehicle charging infrastructure to meet growing guest demand.
Backup Generators & Resiliency Upgrades
Enhance operational reliability during emergencies and outages.

PACE Financing for Hotel Renovations & PIPs

Many hotel owners use PACE financing to complete Property Improvement Plans (PIPs) required by hotel brands. Eligible improvements such as HVAC modernization, lighting upgrades, elevator improvements, insulation, and energy management systems may qualify for financing.

PACE financing can help hotel operators:

Reduce upfront renovation costs
Maintain liquidity
Improve guest experience
Increase property value
Meet franchise brand standards

New Construction PACE Financing

PACE financing has become a powerful solution for ground-up hotel development and new construction projects. Developers can integrate C-PACE into the capital stack to reduce reliance on expensive preferred equity or mezzanine financing.

Common Uses for New Construction:

Boutique hotel developments
Flagged hotel construction
Resort developments
Mixed-use hospitality projects
Extended stay hotels

How the PACE Financing Process Works

Step 1 – Project Evaluation

Our team reviews your property, project scope, and financing objectives.

Step 2 – Eligibility Assessment

We identify qualifying energy-efficient improvements and confirm program eligibility.

Step 3 – Structuring the Capital Stack

PACE financing is integrated alongside senior debt and other financing sources.

Step 4 – Funding Approval

Once approved, funding is secured for eligible project costs.

Step 5 – Repayment Through Property Assessment

Repayment is made through a voluntary property tax assessment over the agreed term.

Who Qualifies for PACE Financing?

PACE financing may be available for:

Hotels
Resorts
Boutique hotels
Motels
Multifamily properties
Mixed-use developments
Commercial office buildings
Industrial properties

Eligibility requirements vary by state and local program guidelines.

Why Choose Us for PACE Financing?

We specialize in hotel and commercial real estate financing solutions designed to help owners maximize property value while improving operational efficiency.

Our Advantages:

Hospitality-focused lending expertise
Access to nationwide PACE programs
Flexible financing structures
Fast underwriting process
Capital stack optimization strategies
Long-term lender relationships

Frequently Asked Questions

What does PACE stand for?

PACE stands for Property Assessed Clean Energy financing.

Is PACE financing available nationwide?

Can PACE financing be combined with other loans?

Is PACE financing only for new construction?

What hotel improvements qualify for PACE financing?

How long are repayment terms?

Trusted by Hotel Owners Nationwide

We were struggling to secure financing for a hotel acquisition, but their team structured a deal that worked when others couldn’t. The process was smooth, communication was constant, and we closed faster than expected. Highly recommend for any hotel investor.

Hotel Investor

Northern California

What stood out most was their speed and expertise. They understood our deal immediately and presented multiple financing options within days. We closed in under 60 days and couldn’t be happier with the terms.

Hotel Owner

Texas

They helped us refinance our property and pull out capital for expansion. The entire experience felt strategic, not transactional. You can tell they specialize in hotels—they know how to get deals done.

Hotel Group

Florida