Atwell Suites, IHG's innovative extended-stay brand, represents one of the most compelling opportunities in the hotel franchise space today. As one of the fastest-growing segments of the hospitality industry, extended-stay hotels consistently outperform traditional hotel formats in occupancy rates, revenue per available room, and long-term investor returns. If you are considering opening an Atwell Suites franchise, one of the first and most important steps is understanding how to finance it. Securing the right Atwell Suites franchise loan can mean the difference between a smooth launch and a stressful, drawn-out process. This guide walks you through everything you need to know, from initial investment costs to loan options, qualification criteria, and how Crestmont Capital can help you secure the funding you need to bring your Atwell Suites vision to life.
Atwell Suites is a mid-scale, extended-stay hotel brand under the IHG Hotels and Resorts umbrella. Launched in 2020, it was designed to meet growing demand among travelers who need accommodations for stays of five nights or more. Unlike traditional limited-service hotels, Atwell Suites combines the comfort and amenities of apartment-style living with the consistency and loyalty benefits of a major hotel brand.
Each Atwell Suites property features fully equipped studio suites with kitchen facilities, flexible living spaces, and all-day grab-and-go dining options. The brand targets modern extended-stay guests including relocating professionals, project-based workers, and travelers who prioritize space and comfort over the amenities of a full-service hotel. Atwell Suites properties are enrolled in IHG One Rewards, one of the industry's largest hotel loyalty programs, which helps drive consistent occupancy from repeat and corporate guests.
IHG (InterContinental Hotels Group) is one of the world's largest hotel companies, with a portfolio of nearly 6,000 properties across more than 100 countries. Its backing gives Atwell Suites franchisees access to global reservation systems, established distribution channels, and robust franchisee support infrastructure. For investors, the Atwell Suites model combines the reliability of an IHG brand with the financial resilience of the extended-stay segment.
As of 2026, Atwell Suites has been expanding aggressively across secondary and tertiary markets where demand for extended-stay accommodations outpaces supply. This makes now an especially compelling time to enter the brand, as early adopters in underserved markets often benefit from lower land costs, reduced competition, and faster ramp-up to stabilized occupancy.
Understanding the total investment required is essential before pursuing any franchise loan. Atwell Suites franchise costs span several categories, and the overall investment range is typical for mid-scale, purpose-built extended-stay hotels. Here is a general breakdown of what prospective franchisees should expect:
The initial franchise fee for an Atwell Suites property is generally in the range of $60,000 to $75,000, depending on the size of the property and negotiated terms with IHG. This fee grants the franchisee the right to operate under the Atwell Suites brand, access to the IHG reservation system, and initial training and support.
New construction for an Atwell Suites property typically requires a total investment ranging from $8 million to $18 million or more, depending on the market, property size (usually 90 to 140 rooms), land costs, and construction costs. This figure includes hard construction costs, soft costs (architectural and engineering fees, permits), furniture, fixtures and equipment (FF&E), pre-opening expenses, and working capital reserves.
Franchisees pay ongoing royalty fees to IHG, which are typically structured as a percentage of gross room revenue. These fees cover the right to use the brand name, access to the global reservations system, participation in IHG One Rewards, and ongoing brand support. Royalty fees for IHG extended-stay brands are competitive with industry standards and are outlined in detail in the Franchise Disclosure Document (FDD).
Lenders and franchisors typically recommend maintaining working capital reserves equal to three to six months of operating expenses. For a mid-size Atwell Suites property, this can range from $300,000 to $700,000 or more, depending on the property's size and projected operating costs.
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Apply Now - Free ConsultationThe extended-stay hotel segment has consistently demonstrated resilience that traditional hotel formats struggle to match. During economic downturns, extended-stay properties tend to maintain higher occupancy rates because they serve guests who have non-discretionary travel needs - workers on long-term assignments, families in transition, and individuals relocating for employment.
According to data cited by Bloomberg, extended-stay hotels outperformed all other hotel segments during periods of economic uncertainty, including the disruptions of 2020 and beyond. The segment's strength stems from lower operating costs (extended-stay guests require fewer daily services like housekeeping), longer average length of stay (which reduces turnover costs and front desk labor), and higher revenue predictability due to weekly and monthly rate structures.
The U.S. Census Bureau data on population migration patterns also supports the extended-stay investment thesis. With millions of Americans relocating for remote work opportunities, corporate transfers, and lifestyle changes each year, demand for quality extended-stay accommodations in secondary markets continues to grow. Investors entering the Atwell Suites brand today are positioning themselves at the intersection of three powerful trends: brand affiliation with IHG, the resilience of extended-stay lodging, and demographic shifts driving domestic travel and relocation activity.
For franchisees already familiar with hotel operations - or investors exploring their first hotel property - Atwell Suites offers a relatively streamlined development process. IHG provides detailed prototype plans, vendor relationships, and construction guidance that can help reduce development timelines and costs compared to building an independent hotel. The brand's participation in SBA loan programs also makes financing more accessible for qualified franchisees.
If you have experience with other hotel franchise brands, you may also find our guides on Hampton Inn franchise loans and Holiday Inn Express franchise loans useful for comparison.
Financing a hotel franchise of this scale requires a well-structured capital stack. Most successful Atwell Suites franchisees combine multiple funding sources to cover the full investment. Here is an overview of the primary financing options available:
Lenders for hotel franchise projects typically require the borrower to contribute between 20% and 35% of the total project cost as equity. For an $10 million Atwell Suites project, that means the owner may need to bring $2 million to $3.5 million in equity, sourced from personal savings, business assets, investment partners, or equity from other real estate holdings.
The SBA 7(a) loan program is one of the most popular financing options for hotel franchisees, offering loan amounts up to $5 million with longer repayment terms and lower down payment requirements than most conventional loans. The SBA's support reduces lender risk, making it easier for borrowers with solid plans but limited collateral to qualify.
The SBA 504 program is specifically designed for real estate and equipment acquisition. It typically involves a structure where a private lender covers 50% of the project cost, a Certified Development Company (CDC) covers up to 40% backed by an SBA debenture, and the borrower contributes 10% equity. For hotel construction projects, the 504 program can fund up to $5 million or more of the eligible project costs.
For Atwell Suites projects in rural or eligible suburban markets, USDA Business and Industry (B&I) guaranteed loans can provide financing up to $25 million. These loans are particularly useful for projects in smaller markets where the Atwell Suites brand is targeting expansion.
Traditional commercial real estate (CRE) loans from banks, credit unions, and non-bank lenders can also fund hotel franchise projects. These typically require higher down payments (25-35%) and shorter amortization periods than SBA-backed options, but may offer more flexibility in structure and timing.
For franchisees in the construction or pre-opening phase, bridge loans provide short-term financing to cover gaps between construction completion and permanent financing. These are especially useful when permanent loan funding is contingent on achieving stabilized occupancy metrics.
A business line of credit can supplement project financing by providing flexible access to working capital during the pre-opening and ramp-up phases. This helps franchisees cover operational expenses, marketing, and staffing without drawing down their permanent financing.
SBA loans are among the most attractive financing options for Atwell Suites franchisees, and understanding how they work can significantly improve your chances of securing favorable terms. The U.S. Small Business Administration does not directly lend money to businesses; instead, it guarantees a portion of loans made by approved lenders, which reduces the lender's risk and enables them to offer better terms to borrowers.
The SBA 7(a) program is the most versatile SBA loan type and is commonly used for hotel franchise financing. Key terms include:
IHG brands, including Atwell Suites, are generally eligible for SBA loan programs. Lenders will verify this eligibility through the SBA's Franchise Directory before processing your application.
For larger projects, the SBA 504 program can be layered with other financing to cover a greater share of the total project cost. The structure typically looks like this for a $10 million Atwell Suites project:
This structure allows franchisees to preserve more capital during the construction and ramp-up phases, which can be critical for long-term financial health.
For a deeper dive into how SBA financing works for franchisees, visit our SBA loans resource page.
While SBA loans offer attractive terms, not every franchisee will qualify or prefer the SBA process. Conventional commercial real estate loans and commercial construction loans are also viable options for Atwell Suites financing, particularly for experienced hotel operators with strong balance sheets and existing lender relationships.
New Atwell Suites developments will almost always require a construction loan during the build phase. These short-term loans (typically 12-24 months) fund construction draws as the project progresses. Once construction is complete and the hotel achieves a stabilized occupancy rate (often 65-70% or higher), the construction loan is typically refinanced into a permanent commercial mortgage.
Permanent financing for hotel properties is typically amortized over 20-25 years, with loan terms of 5-10 years before rate resets or balloon payments. Lenders underwrite permanent hotel loans based on Net Operating Income (NOI), with debt service coverage ratios (DSCR) typically required at 1.25x or higher.
Commercial Mortgage-Backed Securities (CMBS) loans are another option for larger Atwell Suites projects. These non-recourse loans are pooled and sold to investors, offering competitive rates for stabilized properties. However, they are less flexible than bank loans and may be difficult to modify once originated.
If you are exploring fast financing for pre-opening or operational needs, our fast business loans and small business loans can provide a quick capital injection while your permanent financing is being arranged.
Crestmont Capital is a leading business financing company rated #1 in the U.S. for business loans. We specialize in helping hotel franchise owners secure the capital they need to open, expand, and grow their properties. Our team has deep experience with IHG brands and understands the unique financing requirements of extended-stay hotel projects like Atwell Suites.
Here is what sets Crestmont Capital apart when it comes to hotel franchise financing:
Rather than limiting you to a single bank's products, Crestmont Capital works with a broad network of SBA-approved lenders, commercial banks, USDA lenders, and alternative financing sources. This means we can present your project to multiple lenders simultaneously and help you compare competing offers to find the best terms.
Our financing specialists understand the hospitality industry's unique dynamics, including construction timelines, ramp-up periods, revenue per available room (RevPAR) projections, and brand-specific requirements. We know what lenders are looking for in an Atwell Suites loan package and can help you prepare a compelling application.
From pre-qualification through closing, Crestmont Capital provides hands-on guidance at every step. We help you organize financial documents, prepare projections, respond to lender questions, and navigate the complexities of hotel franchise financing so you can focus on your business.
Every Atwell Suites project is different. We work to structure financing that fits your specific situation, whether you are a first-time hotel developer or an experienced operator adding to your portfolio. Our team can help identify the optimal combination of SBA loans, conventional financing, and equity structures to minimize your upfront capital requirements and maximize your returns.
As Forbes has noted, access to the right financing partner can be as important as the business concept itself when it comes to franchisee success. Having an experienced advocate like Crestmont Capital in your corner significantly increases your chances of securing favorable loan terms.
We also offer equipment financing for hotel FF&E needs and bad credit business loans for franchisees who have faced financial challenges in the past.
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Get My Financing OptionsLenders evaluate Atwell Suites franchise loan applications based on several key factors. Understanding these requirements before you apply can help you identify any gaps in your profile and take steps to address them.
Most lenders require a personal credit score of at least 680 for SBA hotel loans, though scores of 700 or higher will significantly improve your terms and chances of approval. Some conventional hotel lenders set higher thresholds, particularly for new construction projects in less-established markets.
For SBA 7(a) loans, borrowers must meet SBA size standards and demonstrate sufficient net worth and liquidity to inject the required equity and sustain operations through the ramp-up period. Lenders typically want to see liquid assets equal to at least 10-20% of the total project cost, in addition to the equity contribution.
Lenders and IHG's franchising team prefer borrowers with relevant hospitality or business management experience. First-time hotel operators may need to demonstrate stronger financial resources or partner with an experienced hotel management company to satisfy lender requirements.
A detailed market study, competitive analysis, and financial projections are essential components of a hotel loan application. Lenders want to see evidence that the proposed market can support an Atwell Suites property and that your projections for occupancy, RevPAR, and NOI are realistic and supportable.
Before a loan can close, IHG must approve you as a franchisee and the proposed site. Starting the franchisor approval process early is critical, as lenders will require evidence of a franchise agreement (or conditional approval) before committing to fund your project.
The hotel property itself typically serves as the primary collateral for hotel loans. For SBA loans, lenders are also required to take any available collateral, which may include personal real estate equity, business assets, and other investments.
Securing financing for an Atwell Suites franchise involves multiple steps and requires careful preparation. Here is a general overview of what to expect:
Before approaching lenders, take stock of your personal and business financials. Review your credit reports, calculate your net worth, and determine how much equity you can contribute to the project. Understanding your financial baseline will help you target the right loan programs and lenders.
Reach out to IHG's franchising team to begin the qualification and site approval process. A conditional franchise agreement or letter of intent from IHG strengthens your loan application significantly and demonstrates to lenders that the project has brand support.
A comprehensive business plan is essential. This should include a market analysis, competitive set review, construction timeline, detailed proforma financial projections (at minimum three years), management structure, and exit strategy. Lenders and SBA reviewers will scrutinize this document carefully.
Contact Crestmont Capital early in the process. Our specialists will review your project, identify the most suitable financing options, and help you prepare a complete loan package. Starting this process before you need the money gives you more time to find the best terms.
Crestmont Capital will submit your loan package to multiple lenders on your behalf. Each lender will conduct their own underwriting review, which may include a property appraisal, environmental review, market study review, and financial statement analysis.
Once your loan is approved and terms are finalized, you will proceed to closing. Construction loan draws will be managed according to a schedule tied to construction milestones. Once construction is complete and your property opens, you will transition to permanent financing.
According to CNBC, preparation and organization are the most critical factors in successfully navigating the commercial loan process. Franchisees who arrive at the table with complete documentation and realistic projections consistently achieve better outcomes than those who rush into applications without adequate preparation.
Figures are estimates and may vary based on market, project size, and lender.
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Apply for Your Franchise LoanThe minimum total investment to open an Atwell Suites franchise typically starts at approximately $8 million, though costs can exceed $18 million or more depending on the market, property size, and construction costs. This includes land, construction, FF&E, franchise fees, and pre-opening and working capital expenses. Prospective franchisees should carefully review IHG's Franchise Disclosure Document (FDD) for the most current and detailed cost estimates.
Can I use an SBA loan to finance an Atwell Suites franchise?Yes, SBA loans are one of the most popular financing options for Atwell Suites and other IHG brand franchises. Both the SBA 7(a) and SBA 504 programs can be used for hotel franchise financing, offering longer repayment terms, lower equity requirements, and government-backed guarantees that make it easier to qualify. Crestmont Capital can help you determine which SBA program is best suited for your project.
What credit score do I need to qualify for an Atwell Suites franchise loan?Most lenders require a minimum personal credit score of 680 for SBA hotel loans, though scores of 700 or higher will result in better terms and higher approval odds. For conventional commercial loans, requirements may vary by lender. If your credit score is below 680, Crestmont Capital can still explore options through our network of lenders, including programs specifically designed for borrowers with credit challenges.
How long does it take to get approved for a hotel franchise loan?The timeline for hotel franchise loan approval varies depending on the loan type and lender. SBA loans typically take 60-90 days from application to closing, while conventional commercial loans may close faster or take longer depending on the lender's review process. Factors like the completeness of your application, the complexity of the project, and the speed of third-party reports (appraisal, environmental) also affect the timeline. Starting the process early is essential.
Do I need hotel experience to qualify for an Atwell Suites franchise loan?While prior hotel or hospitality experience is not always required, it significantly strengthens your loan application and your standing with IHG's franchising team. Lenders view operational experience as a risk mitigator. If you do not have direct hotel experience, partnering with an experienced hotel management company can help satisfy both lender and franchisor requirements and improve your chances of approval.
What is the debt service coverage ratio (DSCR) requirement for hotel loans?Most lenders require a minimum debt service coverage ratio (DSCR) of 1.25x for hotel loans, meaning the property's net operating income must be at least 25% greater than its annual debt service obligations. Some lenders may require 1.35x or higher, particularly for new construction projects in less-established markets. Your financial projections should clearly demonstrate that your Atwell Suites property will achieve the required DSCR once it reaches stabilized occupancy.
What is the typical repayment term for an Atwell Suites franchise loan?For SBA 7(a) loans, repayment terms can extend up to 25 years for real estate components and up to 10 years for working capital and equipment. SBA 504 loans for real estate are typically structured with 20 or 25-year terms. Conventional commercial real estate loans often amortize over 20-25 years with 5-10 year balloon terms. Longer repayment terms result in lower monthly payments, which improves cash flow during the critical ramp-up period.
Can I finance an Atwell Suites acquisition rather than new construction?Yes, acquisition financing is available for buyers looking to purchase an existing hotel property and convert it to or maintain it as an Atwell Suites. Acquisition loans generally have faster timelines than construction loans and can often be structured using SBA 7(a) or conventional commercial real estate financing. The underwriting will focus on the property's existing revenue performance and the projected improvements from IHG affiliation.
What documents do I need to apply for an Atwell Suites franchise loan?A typical hotel franchise loan application requires personal and business tax returns (3 years), personal financial statements, bank statements, a detailed business plan with financial projections, a resume highlighting relevant experience, the IHG franchise agreement or conditional approval letter, construction plans and cost estimates, a market feasibility study, and a legal description and survey of the proposed site. Crestmont Capital will provide a complete document checklist tailored to your specific loan type.
How much equity do I need to invest in an Atwell Suites project?Equity requirements vary by loan type. SBA loans for hotel franchises typically require 10-20% owner equity. Conventional commercial loans often require 25-35%. For a $10 million project, this translates to $1 million to $3.5 million in owner equity, which can come from personal savings, business assets, equity partners, or equity from other real estate holdings. Crestmont Capital can help you explore creative structures to maximize leverage while meeting lender requirements.
What interest rates can I expect on an Atwell Suites franchise loan?Interest rates for hotel franchise loans depend on the loan type, lender, borrower profile, and current market conditions. SBA 7(a) rates are typically variable and based on the Wall Street Journal prime rate plus a lender spread of 2.25% to 4.75%. SBA 504 rates for the CDC portion are fixed and typically lower than market rates. Conventional hotel loans may be fixed or variable and will depend on the lender's cost of funds and the perceived risk of the project. Crestmont Capital will help you compare rates across multiple lenders to find the best available terms.
Is Atwell Suites a good investment compared to other hotel brands?Atwell Suites offers compelling investment characteristics, particularly for investors bullish on the extended-stay segment. The brand benefits from IHG's global distribution and loyalty infrastructure, a growing segment with historically strong recession resistance, lower operating costs than full-service hotels, and IHG's active push to expand into underserved markets. However, like any franchise investment, success depends heavily on site selection, market conditions, management quality, and adequate capitalization. A thorough feasibility study is essential before committing to any hotel investment.
What is the royalty fee structure for Atwell Suites?Atwell Suites franchisees pay ongoing royalty fees to IHG based on a percentage of gross room revenue. The exact percentages are detailed in IHG's Franchise Disclosure Document (FDD), which IHG is required to provide to prospective franchisees at least 14 days before any agreement is signed. Royalty fees for IHG's extended-stay brands are competitive with industry standards. In addition to royalties, franchisees pay reservation system fees, loyalty program fees, and marketing contributions.
Can Crestmont Capital help if I have been turned down by a bank?Yes. Crestmont Capital works with a diverse network of lenders, including SBA-approved lenders, USDA lenders, alternative commercial lenders, and specialty hotel finance companies. If you have been turned down by a traditional bank, we can often identify alternative financing options that may still meet your needs, including programs for borrowers with credit challenges. Our bad credit business loans resource page outlines some of the options available for borrowers with past financial difficulties.
How is Crestmont Capital different from going directly to a bank?When you work with Crestmont Capital, you gain access to dozens of lenders through a single application process, rather than spending months applying to banks one at a time. Our specialists actively advocate for you, help you present your project in the best possible light, and negotiate on your behalf. We understand the hotel franchise lending landscape in ways that most individual banks do not, and we can match your specific project to the lenders most likely to approve it on favorable terms. The result is a faster, smoother financing process with better outcomes for our clients.
Disclaimer: The information provided in this article is for general educational purposes only and is not financial, legal, or tax advice. Funding terms, qualifications, and product availability may vary and are subject to change without notice. Crestmont Capital does not guarantee approval, rates, or specific outcomes. For personalized information about your business funding options, contact our team directly.