Property Improvement PlanPIP
Quick answer
A property improvement plan (PIP) is a brand-mandated renovation scope a hotel owner must complete to obtain or retain a franchise flag.
PIPs are triggered by a sale, a franchise renewal, or a brand standard update, and they can represent a significant capital requirement. Hotel lenders size loans with PIP costs funded through a reserve or a future-funding facility, and hospitality bridge loans frequently exist specifically to finance PIP execution ahead of a refinance.
Related product: Bridge Loans
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