The information presented and shared is designed to provide resources to assist your hotel in financing special projects and potential improvements to your building and structures.  Additional opportunities for financing will be provided as information becomes available.

Choice Hotels Qualified Loan Providers

C-PACE Program


Choice Hotels Qualified Loan Providers

Commercial property assessed clean energy (C-PACE) is a tool that can finance energy efficiency and renewable energy improvements on commercial property. Like other project financing, C-PACE uses borrowed capital to pay for the upfront costs associated with energy efficiency or renewable energy improvements. Unlike other project financing, the borrowed capital is repaid over time via a voluntary tax assessment. The security provided by the tax assessment, a long-used and well understood mechanism, results in several compelling features, including longer term financing and transferability of the repayment obligations to the next property owner. In turn, C-PACE strengthens the business case for investment in longer payback and deeper building retrofits beyond what is possible with traditional financing.

As you begin your process of finding a lender to provide a construction loan for your Choice project, you may find it hard to locate one that is willing to offer a commitment and or provide reasonable loan terms. Choice has lending resources considered Qualified Vendors in the financing industry whom have indicated that they are willing to look at new construction loan request for our Choice franchisees.

C-PACE Program

Their information is available for reference when you are ready to discuss financing options. Below you will find the Choice Qualified Lenders who are willing to look at new construction loans for our Choice brands. Please note Choice Hotels cannot guarantee a loan will be approved by the Qualified Lenders, however, we have established a relationship with the lenders noted and they have expressed their willingness to look at possible financing requests for our franchisees. All financing information and or details will be provided by franchisees to the Qualified Lenders as the lender will ultimately make the loan decision.

Fountainhead Commercial Capital

This link will take you to Fountainhead Commercial Capital’s website where you can explore more information about their team, loan programs and an online application is available for completion.

C-PACE (Commercial Property Assessed Clean Energy) Program Details

  • Programs are established at municipal, regional, and state levels with funding from private capital sources.
  • Not traditional debt or equity called “assessment financing” collateral is property tax.
  • Finance energy efficiency, renewable energy, and water conservation expenses on new construction or hotel conversion project. (NOTE: most are standard in current building code requirements – no real changes needed to project build or renovation.)
  • Heating and cooling systems, lighting improvements, solar panels, and insulation are examples eligible items.
  • C-PACE will finance 100% of the eligible environmental type expenses made to the building.
  • C-PACE is part of capital stack which will still include the need for a construction loan and owner’s equity contribution.
  • C-PACE capital can replace more expensive funding such as mezzanine or JV equity.
  • Some jurisdictions will allow retroactive or “ lookback” funding within 24-36 months for properties that completed qualified improvements.

Key Features of C-Pace Program

  • Will finance 100% of the eligible improvement costs (max loan amounts average of 20-25% of prop value).
  • Non-Recourse; Fixed Interest Rates- C-PACE Legislated in 30+ States w/ active in 20.
  • Interest payments are incl uded on the borrower’s property tax bills.
  • Upon a sale of property; C-PACE financing can be repaid or transferred with the sale
  • Repayment funds through tax assessment on the property for up to 30 years.
  • Some lenders may allow the rolling of the first few years of C-PACE payments into the loan’s principal balance.
  • Borrowers will work directly with a C-PACE Lender whom will guide through the state’s application process.•Must have existing lender approval to allow C-PACE financing be utilized on the project property