Keelhollow Capital Group, a Kissimmee, Florida company that matches small businesses with funding partners, offers this loan payment calculator for hotel and motel owners weighing a renovation, FF&E purchase or other term loan. It computes three things from the amount, rate and term you enter: the monthly payment, total interest and total repaid. It is an estimate, not an offer.
What the Calculator Computes
- Monthly payment on a fully amortizing loan
- Total interest over the term
- Total repaid (amount plus interest)
Nothing beyond those three figures. It does not compute fees, occupancy, revenue per room, break-even, tax, or lease payments. Those steps are explained below so you can work them out by hand.
Using It as a Hotel Payment Calculator
Use the rate from an actual offer or term sheet, not a guess. Enter the amount you would actually receive plus any fees that are financed into it, and the term in months. Then compare the monthly payment with what the property earns in a typical month after its operating costs.
For a phased refit, run the calculator once per phase. The hotels and motels page explains how phasing can keep debt matched to rooms that are earning again.
Reading the Three Results
The monthly payment is what leaves the account each month; compare it with a normal month's earnings after costs, not a strong month. Total interest is the price of borrowing over the whole term, and it is the figure that grows fastest when you stretch the term. Total repaid is the amount plus that interest, the number to set beside any other offer you are weighing.
Run one amount at two or three different terms. A longer term lowers the payment but raises total interest; the right balance is the shortest term whose payment the property can carry in an ordinary month.
Hand Calculations the Widget Leaves to You
Fees
If a partner deducts fees from the amount paid out, the cash you receive is less than the loan. Subtract the fees from the amount to see what reaches your account, and compare offers on that basis.
Revenue per room
Divide the monthly payment by the number of rooms the project improves, then compare that figure with the extra revenue per room you expect from the work. This is your own arithmetic; the calculator does not do it.
Lease or equipment finance agreement
For FF&E on a lease or an equipment finance agreement, use the payment the agreement states. The equipment financing page compares those structures.
Commercial Hotel Loan Calculator Limits
Larger commercial hotel loans, especially mortgages on the property, can have interest-only periods, balloon payments or variable rates. This calculator assumes a fixed rate and equal monthly payments, so it will not match those structures. Keelhollow does not arrange property mortgages; it can help with term loans and equipment financing for hotel and motel businesses.
See business term loans for how those work, and the other guides for lodging records.
