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Investing in a boutique motel in 2025 can be one of the most rewarding — yet misunderstood — paths in commercial real estate. With shifting regulations in short-term rentals and increased interest in experiential travel, small motels are becoming hot investment targets. In a recent video, financing expert Beau Eckstein breaks down what it really takes to finance one of these properties — especially using SBA loans.
Let’s dive into his top tips and learn how to structure a winning deal.
Why Boutique Motels Are a Smart Investment in 2025
Boutique motels appeal to real estate investors for a few reasons:
- Low competition from institutional buyers
- Value-add potential through repositioning, rebranding, and renovating
- Stable cash flow when properly managed
- The shift away from over-regulated short-term rentals to more structured hospitality assets
But financing one of these properties isn’t like buying a house or a duplex. Lenders need a compelling story — and Beau explains how to build one.
Step 1: Get the Right Financial Documents
Before you even think about making an offer, you’ll need:
- Three years of business tax returns (from the seller)
- Year-to-date profit & loss statement
- Current balance sheet
This information forms the basis for assessing cash flow and determining whether the motel can debt service — or cover — the new SBA loan. If the property doesn’t currently meet SBA cash flow criteria, you’ll need to present a strong value-add story.
Step 2: Build a Realistic Value-Add Business Plan
According to Beau, the SBA loan will often hinge on your feasibility analysis and projected business improvements. Your business plan should clearly show:
- Projected occupancy rate and how you’ll increase it
- ADR (Average Daily Rate) targets with data to back them up
- Planned renovations or upgrades
- Operational improvements (like better management or marketing)
This is your opportunity to say, “Here’s why this boutique motel will perform better under my ownership.”
Step 3: Position Yourself as a Strong Borrower
Even with a great property and a great plan, you need to prove you’re the right person to run it. Lenders look at:
- Your credit score
- Relevant experience in business or hospitality
- Your liquidity and net worth
Pro tip: If you’re light on experience or capital, bring in a partner. That person can own as little as under 20% if they’re just helping on the equity side, or they can be a full guarantor if they have experience in hotel operations.
Bonus Resource: Get Help Structuring Your Deal
Beau and his team specialize in helping investors get boutique motel deals financed through SBA. If you’re considering writing an LOI (Letter of Intent), you don’t have to go it alone.
👉 Book a free strategy call now at http://bookwithbeau.com
You’ll get insights on deal structure, funding strategy, and SBA lender matching.
Attend the Business Ownership Summit (Free!)
Want to learn more about leveraging SBA loans, reducing taxes, and creating generational wealth through business ownership?
Beau hosts live educational events around the country where you can learn from lenders, CPAs, and real business owners.
🎓 Register for an upcoming event at https://beaueckstein.com/events
Final Thoughts
Boutique motels represent a growing opportunity for real estate investors ready to move beyond short-term rentals and fix-and-flips. With the right guidance, smart underwriting, and a compelling business plan, you can get SBA financing for your motel project in 2025 — even if the deal looks tricky on paper.
And remember, success comes down to two things:
- Telling the right story
- Working with people who know how to present it to the right lender
So if you’re ready to take the next step toward boutique motel ownership, start by booking a call at http://bookwithbeau.com