How to Finance a Haven Hotel Franchise: Soft Brand Flexibility
By Anthony Cornella
A Haven Hotel franchise loan usually finances an existing independent hotel that wants brand support without giving up its own identity. Haven is a soft brand, so owners can operate under the Haven name or keep their hotel’s current name and add the “a Haven Hotel” tagline, and that flexibility changes how lenders think about the flag, the property and the exit.
Below we cover how the Haven program works, where costs appear in the Franchise Disclosure Document (FDD), how conversions and renovations are financed and what the SBA Franchise Directory listing requires when a management company is involved.
US Professional Funding is not affiliated with, sponsored by or endorsed by Haven Hotel; the name is used only to describe the business. Figures in the franchisor’s disclosure document 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, and owners should review the current FDD and agreements with a qualified franchise attorney and accountant.
Haven Hotel Franchise Loan at a Glance
- Brand type: a soft brand for independent and converting hotels, launched in 2015 by Hospitality Lodging Systems of Atlanta, Georgia.
- Naming options: use the Haven Hotel name, or keep the existing hotel name with the tagline “a Haven Hotel.”
- Program features described by the franchisor: revenue and reservation management systems, administrative and marketing support, fewer mandated amenities, free online reservations and an annual exit opportunity.
- Fees and investment: the application or initial fee, royalty, reservation and marketing charges and the Item 7 investment range should come from the current FDD; we could not verify current figures from the franchisor’s own published materials.
- SBA Franchise Directory: listed under code S3261, with a note restricting management agreements with the franchisor or its affiliates.
- Typical financing: SBA 7(a) and 504 loans, conventional hotel loans, renovation and furniture financing, and working capital.
What Is Haven Hotel?
Hospitality Lodging Systems (HLS), an Atlanta-based hotel franchise and management company, announced the Haven Hotel brand in late 2014 and launched it early in 2015. The company designed Haven for hoteliers, particularly independent owners, who want access to brand systems while running their properties their own way. Openings since then have included properties branded Haven Inn & Suites as well as hotels that kept their own names under the Haven umbrella.
How the soft brand works. Instead of rebuilding a hotel to match a rigid prototype, a soft brand lets the property keep much of its character. HLS has described Haven’s standards as lighter than many brands, with fewer mandated amenities, and has said its fee schedule was shaped largely around fair-franchising principles promoted by hotel owner groups. The agreement includes an annual exit opportunity, which the company presents as a key benefit for owners.
Why lenders look closely at a soft brand. Lenders value a flag because it adds reservation distribution and standards. With a soft brand, they focus more on the hotel’s own performance, location and condition, and they read the exit terms carefully, because an annual exit right that helps the owner also means the brand affiliation could end during the loan. Our article comparing branded and independent hotels explains how that trade-off affects value and financing.
Haven Hotel Franchise Costs
Because the franchisor’s current fee schedule was not available to verify, this section explains what to look for in the FDD and how each cost affects a loan.
Initial fee. Item 5 discloses the application or initial franchise fee, whether it varies by room count and whether any part is refundable. For a conversion, the fee is usually a small part of the project compared with the hotel itself.
Property acquisition or existing equity. Most Haven projects involve a hotel that already exists. Buyers finance the purchase price; current owners who join the brand may finance renovations or refinance existing debt at the same time.
Conversion and renovation. Even with lighter standards, joining a brand often means new signage, updated guest rooms, technology upgrades and repairs identified during the franchisor’s property review. Get a written list of required work before you size the loan.
Furniture, fixtures and equipment (FF&E). Beds, case goods, linens, televisions, laundry equipment, breakfast area equipment and property management systems are major line items in any hotel budget.
Opening costs and working capital. Training, system setup and an operating reserve belong in the budget.
Total investment. Item 7 of the FDD shows the estimated initial investment as a range. Categories typically include:
- Application or initial franchise fee
- Real estate purchase or lease (often excluded from the estimate)
- Renovation and conversion work
- Furniture, fixtures and equipment
- Signage
- Technology and property management systems
- Training and travel
- Opening inventory and supplies
- Additional funds for the first months of operation
Compare the Item 7 ranges with your own contractor and supplier quotes. A Haven Hotel franchise loan is sized on the full project budget and the hotel’s appraised value, not on the brand fee.
Ongoing Fees and How They Affect Your Loan
Item 6 of the FDD lists royalties, reservation and marketing charges, technology fees and fees for transfers or renewals. Hotel fees are commonly calculated on gross room revenue, so they rise and fall with occupancy and rate.
For a Haven Hotel franchise loan, lenders subtract brand fees, payroll, utilities, insurance, taxes, maintenance and an FF&E reserve from revenue before testing whether net operating income covers debt service. Because HLS has positioned Haven as an owner-friendly fee structure, compare the total brand cost carefully with what an independent hotel would spend on its own distribution and marketing.
Franchisor Requirements for New Owners
We could not verify published net worth or liquidity minimums for Haven owners. Ask the franchisor about its current criteria and expect the approval process to cover:
- A review of the hotel’s condition, location and current operations
- A list of required improvements before or after joining the brand
- The owner’s hospitality experience or plan for professional management
- Financial capacity to complete required work and maintain the hotel
- Signing of the brand agreement and completion of onboarding and training
Ways to Own a Haven Hotel
Converting a hotel you already own. Owners of independent hotels, or hotels leaving another brand, can join Haven while keeping their own name. Financing may cover renovation work, new signage and technology, sometimes alongside a refinance of existing debt.
Buying a hotel and joining Haven. A buyer can acquire an independent hotel and convert it at closing. Lenders underwrite the hotel’s historical results and the buyer’s plan. See our hotel and motel acquisition financing options.
Buying an existing Haven property. The franchisor must approve the transfer, and the new owner may need to sign a new agreement and complete required updates.
Developing a new hotel. HLS has also announced development agreements for newly built Haven hotels. Ground-up projects require construction financing, longer timelines and more equity. Our hotel start-up financing page covers new development.
Financing Options for a Haven Hotel Franchise
SBA 7(a) loans. An SBA 7(a) loan can fund a hotel purchase, renovation, FF&E and working capital in one loan, subject to the program maximum and eligibility rules.
SBA 504 loans. Hotels are real-estate-heavy businesses, which makes the SBA 504 loan a natural fit for buying or expanding an owner-operated property.
Conventional hotel loans. Experienced owners with strong equity often use a conventional business loan for larger acquisitions or refinances.
Renovation and FF&E financing. Conversion work and room refreshes can be financed as part of the acquisition loan or separately. Our article on financing brand-required renovations explains how lenders handle property improvement plans.
Working capital. A hotel working capital line can carry payroll and supplies through slower seasons or a renovation period when rooms are out of service.
Seller financing on resales. A seller may carry part of the price on a hotel sale. Any seller note is typically subordinate to the senior loan, and SBA rules may limit its terms.
SBA Loans for Haven Hotel Franchisees
The SBA Franchise Directory lists brands whose agreements have been reviewed for SBA eligibility. Haven Hotel is listed under code S3261, which lets SBA lenders consider loans for its hotels. The listing does not approve any borrower or property.
The management agreement note. Haven’s listing says that if the applicant also operates under a management agreement with a third party, the lender or certified development company must review that agreement under the SBA’s standard operating procedures to determine whether the applicant and the management company are affiliated. The applicant is not eligible if the management company is, or is affiliated with, the franchisor.
Why this matters for Haven owners. HLS offers hotel management services as well as franchising. If you were planning to hand day-to-day operations to the franchisor’s management arm, that arrangement would make the hotel ineligible for SBA financing. Owners who self-manage, or who hire an unrelated management company, can still pursue SBA loans, subject to the lender’s affiliation review. The directory also refers to the brand’s hotel services agreement, so give your lender the full set of brand documents early.
Program limits and tips. The SBA 7(a) program maximum is currently $5 million, and program rules can change. Our article on SBA loans for hotels covers eligibility in more detail, and our SBA loan calculator gives early planning estimates that are not an offer or approval.
How Lenders Evaluate a Haven Hotel Deal
Personal credit and financial history. Expect a review of credit, tax returns, a personal financial statement and a personal guarantee.
Net worth and liquidity. Lenders want equity for the purchase or renovation plus reserves for seasonality and capital repairs.
Hospitality experience. Prior hotel ownership or management carries weight. If you are new to hotels, an experienced general manager or an unrelated management company can help.
Business plan and projections. Build occupancy and rate assumptions from the hotel’s own history and local demand drivers, then layer in brand fees and any revenue lift you expect from the reservation and revenue management systems.
The FDD and brand agreement. Lenders review the term, the annual exit right, termination provisions and transfer rules, and check Item 19 to see whether the FDD includes financial performance representations. Our article on how lenders read a Franchise Disclosure Document covers the essentials.
The property. An appraisal, a property condition report and an environmental review are standard. Deferred maintenance found here often becomes part of the renovation budget.
Historical financials. For an existing hotel, provide several years of profit and loss statements, monthly occupancy and rate reports and tax returns.
Renovation and FF&E Planning
Conversions often come with a defined list of improvements. Separate must-do items from optional upgrades, get bids before closing and include a contingency. Financing the work with the purchase is often cleaner than seeking a second loan later.
Multi-Unit Growth and Development Agreements
Owners who add a second or third hotel to the Haven system usually finance each property separately, with the performance of existing hotels supporting the next request. Development agreements for new-build hotels set schedules, so compare them with how quickly you can raise equity for each project. Lenders will want consolidated financial statements as your portfolio grows.
Real-World Scenarios
An independent owner joining the brand. The owner of an older independent hotel keeps the hotel’s name, adds the Haven tagline and uses a loan to fund signage, room updates and technology while keeping a working capital reserve.
A buyer converting at closing. A buyer purchases an independent hotel with an SBA 504 loan, converts it to Haven and self-manages, which keeps the deal clear of the directory’s management restriction.
An owner planning to hire a manager. An investor wants professional management. The lender confirms the chosen management company is not affiliated with the franchisor before moving forward with SBA financing.
Common Mistakes to Avoid
- Assuming the franchisor can manage the hotel under an SBA loan
- Budgeting for the brand fee but not the conversion work
- Ignoring how the annual exit right affects long-term projections
- Underestimating rooms lost during renovation
- Skipping the property condition review before closing
- Leaving no reserve for seasonal swings in occupancy
For more pitfalls, read the hotel loan mistakes that cost owners the most.
Next Steps to Finance Your Haven Hotel Franchise
Step 1: Request the current FDD. Review Items 5, 6, 7, 10, 17 and 19 and the brand agreement with a franchise attorney and accountant.
Step 2: Get the property review. Ask the franchisor for its list of required improvements for your hotel.
Step 3: Decide who will manage the hotel. Settle this early, because it affects SBA eligibility.
Step 4: Talk with a financing specialist. Compare SBA 7(a), SBA 504 and conventional options for your deal.
Step 5: Build the budget and projections. Include purchase price, renovation, FF&E, fees, reserves and debt service.
Step 6: Apply, close and convert. Coordinate the loan closing with the brand agreement and the renovation schedule.
Haven Hotel Franchise Loan FAQs
How much does it cost to join Haven Hotel?
The estimated initial investment is in Item 7 of the current FDD. For a conversion, the biggest costs are usually the hotel itself and any required renovation, not the brand fee.
Can I keep my hotel’s name?
Yes. Haven lets owners use the Haven name or keep their existing name with the tagline “a Haven Hotel.”
What fees does Haven charge?
The initial fee is in Item 5 and ongoing fees are in Item 6 of the FDD. Request the latest version, because fees can change.
Is Haven Hotel eligible for SBA loans?
Yes. The brand is listed on the SBA Franchise Directory under code S3261, subject to the lender’s review of the borrower, the hotel and any management agreement.
Can the franchisor manage my hotel if I use an SBA loan?
No. Under the directory note, an applicant is not eligible if the management company is, or is affiliated with, the franchisor.
Can I leave the brand later?
The franchisor describes an annual exit opportunity. Read the exact terms in the agreement, and know that lenders will consider it when underwriting.
Can a first-time hotel owner get a Haven Hotel franchise loan?
It is possible, especially with an experienced general manager or an unrelated management company and adequate liquidity.
Can I finance renovations and FF&E?
Yes. Renovation and FF&E costs can be included in an acquisition loan or financed separately.
Does Haven Hotel offer financing?
Item 10 of the FDD discloses any franchisor financing. Most owners arrange their own loans.
How long is the agreement term?
The term, renewal and termination rights are in Item 17 and the brand agreement.
Final Thoughts
Haven gives independent hotels a flexible way to add brand systems without losing their identity. Plan the conversion budget, settle management early because of the SBA rule and line up financing before you commit.
US Professional Funding helps hotel owners and buyers finance acquisitions, conversions, renovations and working capital. Learn more about our franchise financing and hotel and motel financing solutions.
