Deerbank Capital Group, a small-business funding service in Conway, South Carolina, explains how a motel purchase or renovation in Horry County is financed: the real estate through a property lender, and FF&E, renovations and working capital through business funding, with county lodging counts and a worked example. Partners review each request and decide.
How to Finance a Motel? What Partners Look At in Conway, SC
To finance a motel in Conway, SC, split it into two parts. The land and building are financed by a commercial real estate lender with a mortgage; the furniture, fixtures and equipment (FF&E), room renovations and working capital are financed by business funding, which is where Deerbank Capital Group fits. Deerbank Capital Group matches your request with funding partners, who review it and make their own decision.
Horry County had 177 hotel and motel employers with 5,468 paid employees and $190.6 million in payroll in 2023, and 26.6% of them had fewer than five employees (County Business Patterns). Nonemployer Statistics, a separate program, counted 146 traveler accommodation businesses without payroll in 2024.
How to Buy a Motel? Practical Notes for Horry County, SC
- Get the seller's room revenue by month for two or three years, with occupancy reports.
- Get the accommodations tax returns that report that revenue.
- Get the FF&E list with ages, and an inspection of the rooms.
- Line up the real estate lender for the property.
- Price the renovation and FF&E the property needs after closing.
- Ask a business funding partner about the FF&E and working capital pieces.
How to Finance a Hotel? Steps for Conway, SC Owners
Financing a hotel follows the same split, with one addition for branded properties: the franchise may require a property improvement plan after a sale, and that plan's cost has to be financed too. A term loan sized to the plan's scope fits it. The hotel loans page covers renovations, FF&E and working capital in more detail.
What Are FF&E Costs? A Conway, SC Answer
FF&E costs are the furniture, fixtures and equipment that make rooms rentable: beds, case goods, soft goods, televisions, PTAC units, lobby furniture and laundry equipment. They wear out well before the building does and are financed separately, for example as equipment with the items as security.
How to Buy a Motel Business? The Conway, SC Version
Buying a motel business, rather than only the property, means buying its revenue, its booking channels and its records. A partner financing the business side reads the seller's room revenue, the tax returns and the FF&E condition. Booking platform accounts and online listings should transfer with the sale; ask the seller how.
How to Finance a Hotel Project? A Checklist for Horry County, SC Owners
- A scope of work with contractor bids.
- FF&E quotes, room by room.
- A schedule showing which rooms are out of service and when.
- The property's room revenue history.
- The real estate lender's terms, if the property is financed.
- Permits for the work.
The Conway, SC page covers the county's lodging tax records, and the request form is the place to start.
A 32-Room Refresh and Three Months of Payroll: Worked Example
Illustration only, invented figures: a buyer plans to refresh 32 rooms at $5,800 a room, $185,600 of FF&E (our arithmetic). In this invented example the FF&E is financed at a 10% annual rate over 84 months, about $3,081 a month, with total payments of about $258,819 (our arithmetic).
In this invented example the buyer also asks for $43,500 of working capital, three months of a $14,500 monthly payroll (our arithmetic), to carry the property while renovated rooms return to service. The real estate loan is arranged separately with a property lender.
Accommodations Tax Returns Tell the Revenue Story
A partner reading a motel request compares the room revenue in the bank statements with the revenue reported on accommodations tax returns. If the two match, the seller's numbers hold together. If they do not, the gap needs an explanation before anyone funds.
Laundry, PTAC Units and Back-of-House Equipment
Not every motel cost is in the rooms. Commercial washers and dryers, ice machines, water heaters, PTAC heating and cooling units, key-card locks and the property management system each carry their own quote and can be financed as equipment. Replacing them on a schedule, rather than all at once after a breakdown, lets an owner plan the payments and keep rooms rentable.
Working Capital While Rooms Are Out of Service
A renovation takes rooms off the market while wages, utilities and loan payments continue. Build a schedule that shows how many rooms are out each month and what revenue the rest bring in. A partner reading a working capital request for a renovation wants that schedule, because it shows when the business returns to its normal deposits.
Checklist Before You Send a Motel Funding Request
- Seller's room revenue and occupancy, by month.
- Accommodations tax returns and bank statements that support them.
- Property lender's term sheet, if buying.
- Renovation scope, FF&E quotes and a room schedule.
- A working capital estimate built from payroll and supplies.
By Deerbank Capital Group · Updated
