Bridge, an AI-driven financial platform, announced it will reduce its hotel debt placement fee to 50 basis points (0.5%) beginning October 1, roughly half the 1% to 1.5% fee commonly charged on hotel financings. For a hotel owner refinancing a $10 million property, the reduced fee could save $50,000 to $100,000. The new pricing will initially apply to franchisees affiliated with Bridge partners and focus on acquisition or refinancing deals over $10.0 million.
"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."
Traditional hotel debt placement is labor intensive, requiring manual data collection, deal-by-deal underwriting, and individual lender outreach, often taking months. Bridge has automated 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 then executes 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.
"Everyone is talking about AI. But if AI doesn't eventually translate into dollars and cents for the customer, what is the point?" Mathur added. "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."
Beginning October 1, Bridge will also publish its debt placement pricing so hotel owners can compare the cost of arranging financing before selecting an advisor or lender. According to the company, typical market fees range from 1% to 1.5% for loans of $10 million and $15 million, and about 1% for loans of $20 million or more. Bridge's flat 0.5% fee could save owners $75,000 to $150,000 on a $15 million loan, and over $100,000 on a $20 million-plus loan.
"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."
Bridge, founded in 2023 by Rohit Mathur and Harte Thompson following a spin-out from Citi, has deployed more than $900 million and financed hundreds of growing businesses. The company has partnerships with major corporations including Hilton, AAHOA, Choice Hotels, Hyatt, Wyndham, Walmart, Best Buy, Dollar General and Chipotle. It is backed by investors such as TTV Capital, Citi Ventures, Uncorrelated Ventures, Gilgamesh Ventures, Thayer Partners and US Bank Ventures.
For hotel owners, the fee reduction could mean significant savings on refinancing or acquisition costs, potentially improving project returns. For the broader hotel financing industry, Bridge's move may pressure competitors to lower fees and increase transparency. If other lenders follow suit, the cost of hotel debt could decline across the market, benefiting hotel developers and investors. The announcement was originally released via www.newmediawire.com and can be found on NEWMEDIAWIRE. More information about Bridge's hotel financing is available at bridge.co.
