Industry Insights
Bridge Cuts Hotel Debt Placement Fees by 50% as AI Drives Down the Cost of Financing
New 50-basis-point pricing launches October 1 for franchisees of Bridge partners, saving hotel owners $50,000 to $100,000 on a $10 million financing.
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Bridge today announced that it is cutting its hotel debt placement fee to 50 basis points, approximately half the 1% – 1.5% fee commonly charged on hotel financings.
For a hotel owner refinancing a $10 million property, the difference can mean $50,000 to $100,000 in savings.
The move reflects a simple premise: if technology makes financing dramatically 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, Chief Executive Officer 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.”
Why Bridge Can Charge Less
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 through lower fees.
Mathur added: “Everyone is talking about AI. But if AI doesn’t eventually translate into dollars and cents for the customer, what is the point? 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.”
A New Benchmark for Hotel Debt Placement
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.
| Loan Size | Typical Market Fee | Bridge Fee | Potential Owner Savings |
|---|---|---|---|
| $10 million | 1%–1.5% | 0.5% | $50,000–$100,000 |
| $15 million | 1%–1.5% | 0.5% | $75,000–$150,000 |
| $20 million+ | ~1% | 0.5% | $100,000+ |
The new pricing will launch initially for franchisees affiliated with Bridge partners, and focus on acquisition or refinancing deals over $10.0 million.
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.”
About Bridge
Bridge is an AI-driven financial platform transforming how hospitality developers and retail suppliers access capital. As a leader in Hospitality Commercial Real Estate and Retail Supplier Financing, Bridge delivers fast, transparent, and tailored funding solutions by combining cutting-edge technology with industry expertise. By streamlining the financing process, Bridge enables developers and suppliers to focus on growth and innovation. 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.
Bridge has established partnerships with leading corporations, including Hilton, AAHOA, Choice Hotels, Hyatt, Wyndham, Walmart, Best Buy, Dollar General and Chipotle to support franchisees and suppliers nationwide. Backed by TTV Capital, Citi Ventures, Uncorrelated Ventures, Gilgamesh Ventures, Thayer Partners and US Bank Ventures, Bridge is committed to driving value and unlocking new opportunities for its clients.
Learn more at bridge.co/hotel-financing
Media Contact
Cletus McKeown, SVP Growth, Bridge · cmckeown@bridge.co
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Cletus McKeown
Cletus leads growth at Bridge across hotel financing and production capital for consumer brands. He spends his time on the distance between what borrowers are told and what actually gets you the capital you need.
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