How to Finance a Boarders Inn & Suites Franchise: Rebrands
By Chris Cornella
A Boarders Inn & Suites franchise loan is almost always tied to a hotel that already exists. Boarders Inn & Suites by Cobblestone Hotels is the conversion brand of Cobblestone Hotels, built for owners of modern, amenity-focused hotels who want a brand name and support without the cost structure of a larger chain, so most deals involve buying, refinancing or repositioning a property rather than building one.
US Professional Funding is not affiliated with, sponsored by or endorsed by Boarders Inn & Suites or Cobblestone Hotels; the names are used only to describe the business. Figures from the franchisor’s disclosure document and materials can change, loan programs and terms vary by lender and borrower, and every loan is subject to review and approval. Nothing here is legal, tax or investment advice; review the current Franchise Disclosure Document (FDD) and franchise agreement with a qualified franchise attorney and accountant.
Boarders Inn & Suites Franchise Loan at a Glance
- Franchisor: Cobblestone Hotels, LLC, headquartered in Neenah, Wisconsin.
- Brand role: the company’s conversion brand, aimed at owners who already have a modern, amenity-focused hotel.
- Segment: described as midscale in the company’s current development materials.
- Brand size: 15 hotels open or under development, according to the company’s development materials.
- Parent system: more than 160 Cobblestone-family hotels in 28 states, each independently owned and operated, according to the company.
- Fees and investment: not published on the franchisor’s website; request the current FDD and read Items 5, 6 and 7.
- SBA Franchise Directory: listed as “Boarders Inn & Suites by Cobblestone” (code S6058), with a note on third-party management agreements.
What Is Boarders Inn & Suites?
Cobblestone Hotels grew from a 2007 road trip by founder Brian Wogernese, who noticed that small towns had few modern lodging options. Its first hotel was a 31-unit Cobblestone Inn & Suites, and the company now builds and franchises several brands from its Neenah, Wisconsin headquarters, with a focus on smaller and mid-size communities.
Boarders Inn & Suites is the system’s conversion option. Rather than building a new Cobblestone, an owner with an existing hotel can rebrand it as a Boarders. In company announcements, Wogernese said the brand was started to give good hoteliers an option if they were not interested in paying variable fees. The brand’s development page says it has no “capital crushing mandates,” long commitments, extremely high initial payment or per-reservation fee, and describes a membership-style approach in which owners have a say in the brand’s direction.
What a Boarders hotel looks like. Company announcements of past conversions describe properties such as a 43-room hotel in Medford, Wisconsin and a 63-room hotel in Munising, Michigan, with amenities that included in-room coffee, an indoor pool, free high-speed internet, guest laundry and a daily hot breakfast. Guests can earn points in the Cobblestone Rewards program.
Why lenders view Boarders the way they do. An operating hotel with its own history plus a regional brand is often easier to underwrite than a ground-up build. The questions are the property’s condition, its historical revenue and expenses, the cost of any work needed to meet brand standards, and how much value the brand adds in that market compared with operating independently.
Boarders Inn & Suites Franchise Costs
The franchisor does not publish fees or an investment range online, so the current FDD and your own property inspection are the starting points.
Initial franchise or application fee. Item 5 of the FDD states the fee to join the brand and whether any portion is refundable.
The property. For a buyer, the hotel purchase is the largest cost; an existing owner may only fund conversion work and any refinancing.
Conversion work and FF&E. Expect exterior and interior signage, any upgrades needed to meet brand standards, and possibly furniture, fixtures and equipment (FF&E) such as guest room furnishings, televisions, breakfast and laundry equipment. Item 7 and the franchisor’s property review will show what applies.
Technology and opening costs. Budget for reservation system connection, staff training and launch marketing.
Working capital. Reserve cash for payroll and debt service during the changeover, especially if rooms are out of service.
Total investment. Item 7 of the FDD shows the franchisor’s estimate. Lenders will want it broken down into categories such as:
- Initial franchise or application fee
- Property purchase or refinancing
- Signage and brand-standard improvements
- Furniture, fixtures and equipment
- Technology and reservation system connection
- Training, opening marketing and insurance
- Additional funds for the initial operating period
Ongoing Fees and How They Affect Your Loan
The fee structure. Boarders was designed for owners who do not want to pay variable fees, and its development page says there is no per-reservation fee. Item 6 of the current FDD shows exactly how ongoing charges are calculated, including any fixed monthly or annual fees, marketing contributions, technology and loyalty program charges, and renewal and transfer fees.
Why the structure matters to a lender. Fees that are fixed rather than tied to revenue are easier to forecast, though they do not fall when occupancy drops. Lenders will build them into the hotel’s operating expenses and test debt service coverage across slower seasons.
Capital commitments. Even without heavy mandates, the franchise agreement sets property standards, so budget for normal furniture replacement when sizing a Boarders Inn & Suites franchise loan.
Franchisor Requirements for New Owners
The franchisor’s website does not publish minimum net worth or liquidity requirements. The brand is aimed at owners who already have a modern, amenity-focused hotel, so the franchisor will review the property’s condition and amenities as well as the owner’s experience. Ask the franchisor for its application process, property review and any qualification standards, and confirm them in the FDD.
Lenders add their own expectations: equity, hotel experience or an experienced manager, and liquidity beyond the down payment.
Ways to Own a Boarders Inn & Suites
Converting a hotel you already own. An independent or branded owner rebrands an existing property. Financing may cover conversion work, FF&E and working capital, or a refinance that pays off existing debt and funds the changeover. Read our overview of conversion franchise financing.
Buying a hotel and converting it. A buyer acquires an existing hotel and joins Boarders at closing. The loan covers the purchase and the conversion budget. Our hotel acquisition financing page explains how these purchases are structured.
Buying an existing Boarders hotel. A buyer purchases a hotel that already flies the flag, subject to the franchisor’s transfer approval. Lenders can underwrite the hotel’s actual performance under the brand.
Financing Options for a Boarders Inn & Suites Franchise
SBA 7(a) loans. The SBA 7(a) program can finance the purchase of a hotel, conversion costs, FF&E and working capital in a single loan for eligible borrowers.
SBA 504 loans. Because hotels are owner-occupied real estate and long-lived assets, the SBA 504 loan is often a fit for buying the property or making major improvements, with working capital financed separately.
Conventional term loans. A conventional commercial loan may suit an experienced owner with strong equity, or a property whose structure or management arrangement does not fit SBA rules.
Working capital and lines of credit. Small-market hotels often see seasonal swings tied to travel, events and local industry. A line of credit or hotel working capital can carry payroll and utilities through slower months and the conversion period.
Refinancing. An owner converting a hotel may refinance existing debt to fund the changeover. See our options for hotel debt refinancing.
Seller financing on resales. When a Boarders hotel is sold, part of the price may be carried by the seller. Any seller note would need to be acceptable to the senior lender, is typically subordinate to it and may be limited by the rules of the loan program being used.
SBA Loans for Boarders Inn & Suites Franchisees
SBA lenders generally require a franchise brand to appear on the SBA Franchise Directory before making an SBA-guaranteed loan to one of its franchisees. A listing means the brand’s franchise documents have been reviewed for SBA eligibility; it does not approve any borrower or property.
The Boarders listing and its note. The directory lists “Boarders Inn & Suites by Cobblestone” under code S6058, with a note on management agreements. In plain English: if the owner also hires a third-party company to manage the hotel, the lender or the certified development company must review that management agreement under SBA rules to decide whether the borrower and the management company are affiliated. And if the management company is the franchisor, or is affiliated with the franchisor, the borrower is not eligible for the SBA loan.
What that means in practice. Cobblestone’s development materials mention a preferred management partner. If you plan to use any management company, give your lender the agreement early and confirm whether that company has any ownership or other affiliation with the franchisor. If it does, SBA financing will not work with that arrangement, and you will need a different manager or a conventional loan.
Application tips. When applying for a Boarders Inn & Suites franchise loan through the SBA, prepare the hotel’s historical statements and occupancy reports, a conversion budget and a personal financial statement. The SBA 7(a) program maximum is currently $5 million, though program rules can change. Our article on SBA loans for hotels covers more detail, and our SBA loan calculator can help with early payment estimates, which are for planning only and are not an offer or approval.
How Lenders Evaluate a Boarders Inn & Suites Franchise Loan
Personal credit and financial history. Expect a review of credit and tax returns, and personal guarantees.
Net worth and liquidity. Hotels are capital-intensive, so lenders look for an equity contribution and reserves left after closing to handle repairs and slow seasons.
Hotel experience. Prior hotel ownership or management carries real weight. First-time owners often strengthen a request with an experienced general manager or management company, subject to the SBA note above.
Business plan and projections. Projections should start from the hotel’s actual history and show how rates, occupancy and expenses change under the brand, including the fixed fee structure and any rooms out of service during conversion.
The FDD and franchise agreement. Lenders read the term, renewal and transfer provisions, property standards and Item 10 for any franchisor financing.
The property. Expect an appraisal, a property condition report and environmental review. In small towns, limited comparable sales can make the appraisal and the hotel’s own track record especially important.
FF&E, Property Standards and the Conversion Budget
Even a modern hotel usually needs some work to join a brand, so a conversion budget should include signage, guest room and lobby updates, technology and a contingency. Owners comparing a flag with operating independently should weigh the brand’s reservation channels and loyalty program against its fees and standards; our article on branded versus independent hotels walks through that decision. For larger renovation requirements, see how to finance a property improvement plan.
Multi-Unit Growth
Owners may convert more than one property or add a Boarders to an existing portfolio. Lenders look at each hotel’s cash flow and the owner’s combined debt, and each conversion needs the franchisor’s approval.
Real-World Scenarios
An independent owner joining a brand. The owner of a well-kept independent hotel in a small town wants reservation and loyalty support without variable fees. The owner refinances existing debt and adds funds for signage and technology, keeping a working capital reserve for the changeover.
A buyer converting at closing. A buyer purchases a hotel leaving another brand and converts it to Boarders at closing. The lender finances the purchase and conversion budget, relying on the hotel’s history and the buyer’s hotel management experience.
Common Mistakes to Avoid
- Assuming a modern hotel needs no conversion work and leaving no contingency
- Ignoring the SBA management agreement rule until late in the process
- Using projections that ignore rooms out of service during conversion
- Underestimating seasonal swings in a small-market hotel
For more pitfalls, read the hotel loan mistakes that cost owners the most.
Next Steps to Finance Your Boarders Inn & Suites Franchise
Step 1: Contact the franchisor. Ask about the property review, the current FDD and the fee structure.
Step 2: Review the FDD with advisors. Study Items 5, 6, 7, 10, 17 and 19 and the franchise agreement with a franchise attorney and accountant.
Step 3: Inspect and budget. Get a property condition report and contractor quotes for conversion work.
Step 4: Decide on management. If using a management company, confirm it has no affiliation with the franchisor if you want SBA financing.
Step 5: Talk with a financing specialist. Compare SBA 7(a), SBA 504 and conventional options.
Step 6: Apply and close. Submit hotel financials, your conversion budget and franchise documents, then coordinate closing with the brand’s opening timeline.
Boarders Inn & Suites Franchise Loan FAQs
How much does a Boarders Inn & Suites franchise cost?
The franchisor does not publish fees or an investment range online. Costs depend on the property, its condition and whether you are buying it. Review Items 5, 6 and 7 of the current FDD.
Does Boarders charge a per-reservation fee?
The brand’s development page says it does not. Confirm all ongoing fees in Item 6 of the current FDD.
Can I get an SBA loan for a Boarders Inn & Suites?
Yes, the brand is listed on the SBA Franchise Directory under code S6058, subject to lender approval and the directory’s management agreement note.
Can I use a management company with an SBA loan?
Possibly. The lender must review the agreement for affiliation, and you are not eligible if the management company is, or is affiliated with, the franchisor.
Can I use SBA 504 for a Boarders hotel?
Often, yes, since a hotel is owner-occupied real estate. Working capital and some soft costs may need separate financing.
Can a first-time hotel owner get a Boarders Inn & Suites franchise loan?
It is possible, but lenders typically want hotel experience or an experienced manager, along with solid equity and reserves.
Can I finance conversion work and FF&E?
Yes. Conversion costs can be included in a purchase or refinance loan, and FF&E can sometimes be financed separately.
Does the franchisor offer financing?
The franchisor’s website does not describe a financing program. Check Item 10 of the current FDD.
Does the FDD include financial performance information?
Review Item 19 of the current FDD to see whether it includes financial performance representations, and rely on the hotel’s actual statements.
Final Thoughts
Boarders Inn & Suites offers hotel owners a way to join a regional brand without the fee structure of a larger chain. Financing success comes down to the property’s history, a realistic conversion budget and early attention to the SBA management agreement rule.
US Professional Funding helps hotel owners and franchise buyers finance acquisitions, conversions, refinancing and working capital. Learn more about our franchise financing and hotel and motel financing solutions.
