Bridge, an AI-driven financial platform, announced it will reduce its hotel debt placement fee to 50 basis points, or 0.5%, effective October 1. The new fee is roughly half the 1% to 1.5% commonly charged on hotel financings, according to the company. For a hotel owner refinancing a $10 million property, the difference amounts to $50,000 to $100,000 in savings. The announcement, reported via NEWMEDIAWIRE, reflects a bet that artificial intelligence can lower the cost of originating loans and that those savings should be shared with borrowers.
"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. Financial information is collected manually, underwriting is assembled deal by deal, lenders are contacted individually, and borrowers often spend months moving through the financing process. Bridge says its technology automates significant portions of that workflow. The platform can screen and underwrite hotel transactions in hours, organize borrower and property data, evaluate financing alternatives, and identify appropriate capital sources. Bridge can then execute through direct lending channels or its broader lender network.
"Everyone is talking about AI. But if AI doesn't eventually translate into dollars and cents for the customer, what is the point?" Mathur said. "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. The new pricing will launch initially for franchisees affiliated with Bridge partners and focus on acquisition or refinancing deals over $10.0 million. For a $15 million loan, the company estimates potential owner savings of $75,000 to $150,000, and for loans of $20 million or more, savings can exceed $100,000.
The move could pressure other lenders and advisors to follow suit. "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 Mathur and Harte Thompson following a spin-out from Citi, has deployed more than $900 million and financed hundreds of growing businesses. It has partnerships with corporations including Hilton, AAHOA, Choice Hotels, Hyatt, Wyndham, Walmart, Best Buy, Dollar General and Chipotle to support franchisees and suppliers nationwide. The company is backed by TTV Capital, Citi Ventures, Uncorrelated Ventures, Gilgamesh Ventures, Thayer Partners and US Bank Ventures. More information is available at bridge.co.
