Marcus & Millichap Arranged $4.56 Million Hotel Loan

The firm secured financing for the acquisition of a boutique hotel in Palm Springs, California.

Updated on Sept. 23, 2026 in Hospitality

Isometric editorial illustration of a modernist boutique hotel building facade with clean geometric lines and desert landscaping. — Marcus & Millichap secured $4.56 million in SBA 504 financing to support the acquisition of the A Place in the Sun boutique hotel in Palm Springs, California. AI Illustration. Upload story photo >

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Marcus & Millichap Capital Corporation successfully arranged $4.56 million in financing for the acquisition of the A Place in the Sun boutique hotel. The deal utilized an SBA 504 loan for the Palm Springs property located at 754 East San Lorenzo Road.

Why it matters

The financing supports a private client's investment strategy for the hospitality asset as part of a larger push into the local market. By securing an SBA 504 loan with favorable terms, the investor is positioned to manage the long-term operational costs of the historic site.

The acquisition involved $4,566,000 in financing with an 80% loan-to-value ratio and a 30-year amortization schedule. The property itself is a boutique hotel originally built in the early 1950s.

The players

Marcus & Millichap Capital Corporation

This is a prominent commercial real estate brokerage and financing services firm that operates across the United States.

The details

The financing arrangement was secured by the director of the Marcus & Millichap San Francisco office through a regional bank. A Place in the Sun boutique hotel offers amenities including a heated pool, a jacuzzi, and a professional artificial turf putting green.

The hotel was originally constructed in the early 1950s.
The financing arrangement for the acquisition was completed in September 2026.

Market Landscape

The use of the SBA 504 loan program follows the broader industry trend of utilizing government-backed financing to stabilize commercial hospitality investments. This deal underscores how specialized capital structures are increasingly used to bridge the gap in boutique hotel transactions.

For travelers and guests, this financing ensures the continued operation and maintenance of the historic A Place in the Sun boutique hotel. Residents may see maintained property standards as the new ownership integrates the hotel into the local market.

The takeaway

Securing long-term financing with a 30-year amortization period can significantly lower monthly overhead for hospitality property owners. Investors should evaluate these government-backed loan structures as a viable alternative to conventional commercial lending.