Bridge, an AI-driven financial platform, announced it will reduce its hotel debt placement fee to 50 basis points (0.5%) effective 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 change could mean $50,000 to $100,000 in savings. The move reflects a deliberate strategy to pass technology-driven cost reductions directly to borrowers, a departure from traditional fee structures that have remained largely static despite advances in other areas of hotel operations.
“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, CEO 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, involving manual data collection, deal-by-deal underwriting, and individual lender outreach, often stretching over 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 direct lending channels or its broader lender network, resulting in a lower-cost origination process.
“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.”
Starting October 1, Bridge will publish its debt placement pricing, allowing hotel owners to compare the cost of arranging financing before selecting an advisor or lender. The new pricing will initially apply to franchisees affiliated with Bridge partners, focusing on acquisition or refinancing deals over $10.0 million. According to the company's published table, a $10 million loan at 1%–1.5% would cost $100,000–$150,000 in fees, while Bridge's 0.5% fee would be $50,000, saving the owner $50,000–$100,000. For a $15 million loan, savings range from $75,000 to $150,000, and for loans over $20 million, savings exceed $100,000.
Bridge hopes its pricing transparency will set a new benchmark and encourage broader industry change. “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.”
The announcement comes as AI adoption accelerates across hospitality, but few companies have explicitly tied cost reductions to customer pricing. Bridge's decision could pressure competitors to reevaluate their own fee structures, potentially benefiting hotel owners across the sector.
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. It has partnerships with major 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. For more information on its hotel financing solutions, visit bridge.co. The original release is available on www.newmediawire.com.
