Hotel owners refinancing or acquiring properties may soon see significantly lower financing costs. Bridge, an AI-driven financial platform, announced it will cut its hotel debt placement fee to 50 basis points (0.5%) effective October 1, roughly half the 1% to 1.5% fee commonly charged on hotel financings. For a $10 million property, that difference translates to $50,000 to $100,000 in savings for the borrower.
The move reflects a simple premise: if technology makes financing more efficient, hotel owners should share the benefit. “The economics of almost every part of the hotel business have changed over time, but the way borrowers pay to arrange financing has changed remarkably little,” said Rohit Mathur, CEO and cofounder of Bridge. “AI allows us to do work that historically took weeks or months in a fraction of the time. If technology lowers our cost to originate a loan, we believe those savings should make their way to the hotel owner.”
Traditional hotel debt placement is labor intensive. Financial information is collected manually, underwriting is assembled deal by deal, lenders are contacted individually, and borrowers often spend months moving through the financing process. Bridge has built technology to automate significant portions of that workflow. Its platform can screen and underwrite hotel transactions in hours, organize borrower and property data, evaluate financing alternatives, and identify appropriate capital sources. Bridge can then execute through its direct lending channels or its broader network of lenders. The result is a lower-cost origination process, and Bridge is passing that efficiency directly to borrowers.
“Everyone is talking about AI. But if AI doesn't eventually translate into dollars and cents for the customer, what is the point?” Mathur added. “A placement fee has historically compensated firms for the work required to get a loan closed. Technology is making that work faster and less expensive. We think the price should change with it.”
Beginning October 1, Bridge will publish its debt placement pricing so hotel owners can compare the cost of arranging financing before selecting an advisor or lender. The new pricing will launch initially for franchisees affiliated with Bridge partners, focusing on acquisition or refinancing deals over $10.0 million. For a $15 million loan, the savings could reach $75,000 to $150,000, and for loans over $20 million, savings could exceed $100,000.
Bridge believes the broader opportunity goes beyond its own pricing. “If technology can reduce the cost of originating hotel debt, borrowers should expect that benefit to show up in what they pay,” Mathur said. “We hope others in the industry ultimately do the same.”
Founded in 2023 by Rohit Mathur and Harte Thompson following its spin-out from Citi, Bridge has deployed more than $900 million and financed hundreds of growing businesses. The company has partnerships with major corporations including Hilton, AAHOA, Choice Hotels, Hyatt, Wyndham, Walmart, Best Buy, Dollar General, and Chipotle. Its investors include TTV Capital, Citi Ventures, Uncorrelated Ventures, Gilgamesh Ventures, Thayer Partners, and US Bank Ventures. For more information, visit bridge.co. The full release is available at www.newmediawire.com.
