Deal Summary

A hotel developer in Gatlinburg, Tennessee sought construction financing for a new hospitality project located near the Great Smoky Mountains, one of the most visited national parks in the United States. The borrower required funding to complete land development, vertical construction, FF&E, and pre‑opening costs for a new hotel positioned to serve year‑round leisure demand.

Borrower Challenge

The borrower needed a construction loan that aligned with the project’s development timeline, projected ramp‑up period, and the seasonality of the Gatlinburg market. Traditional lenders were cautious due to rising construction costs, interest‑rate volatility, and the need for a clear path to stabilization. The borrower required a lender capable of understanding hospitality construction risk, underwriting tourism‑driven markets, and structuring a loan that supported both the build‑out and the initial operating period.

Our Solution

Our team evaluated the project’s feasibility, sponsorship experience, and market fundamentals to determine the most suitable construction financing structure. We reviewed the developer’s plans, cost breakdown, projected ADR and occupancy, and the competitive set within Gatlinburg’s tourism corridor. By analyzing the borrower’s experience and the project’s demand drivers, we identified a financing path that aligned with the development schedule and supported the hotel’s ramp‑up to stabilization.

Financing Overview – Hotel Construction Loan Gatlinburg TN

The borrower requested construction financing to support site preparation, vertical construction, FF&E, and pre‑opening expenses. Our analysis focused on loan sizing, projected DSCR at stabilization, and the borrower’s equity contribution. This section summarizes the key loan terms and the underwriting considerations relevant to hospitality construction in a high‑demand leisure market.

Transaction Snapshot

• Location: Gatlinburg, Tennessee
• Loan Type: Hotel Construction Financing
• Use of Proceeds: Ground‑up development, construction, FF&E, pre‑opening
• Market: High‑demand tourism corridor near Great Smoky Mountains
• Borrower Type: Hotel developer / hospitality operator
• Project Purpose: Develop a new hotel positioned for year‑round leisure demand

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