Avatar Financial Provided Bridge Loan for Hotel Providence

The $6.45 million loan supports the renovation of the 80-room hotel located in Providence.

Updated on Oct. 6, 2026 in Hospitality

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Avatar Financial Group has issued a $6.45 million bridge loan to support the acquisition and renovation of Hotel Providence. The property, situated at 139 Mathewson St., is currently undergoing a strategic repositioning following the loss of its former brand affiliation.

Why it matters

The investment aims to revitalize the property after occupancy declines occurred under previous ownership. The sponsor plans to improve the hotel in stages to restore its competitiveness in the local hospitality market.

The bridge loan is a two-year, first-lien instrument originated at 63% loan-to-value. The 80-room, 74,276-square-foot hotel is currently operating as an independent property following the discontinuation of its Wyndham flag.

The players

Avatar Financial Group

Avatar Financial Group is a private lending institution that specializes in commercial bridge financing for real estate acquisitions and property improvements.

Hotel Providence

Hotel Providence is an independent 80-room historic hotel located in the Entertainment District of Providence.

The details

The new ownership is committing $1 million to a first-year refresh of the hotel guestrooms. This effort is part of a larger plan to improve the 1882, 1897, and 1994 structures through a comprehensive property improvement program.

The hotel's original construction took place in 1882.
The property discontinued its Wyndham brand affiliation in early 2025.
Avatar Financial Group provided the bridge loan in October 2026.
The planned guestroom refresh investment will occur during the first year of ownership.
The bridge loan is structured for a duration of two years.

Market Landscape

This acquisition reflects a broader industry shift toward de-flagging hotels to pursue independent luxury-boutique brand strategies. By moving away from rigid franchise requirements, owners are increasingly seeking to optimize operations and property value in secondary markets.

Guests should expect interior upgrades to guestrooms over the coming year as the property begins its renovation cycle. The hotel will continue to operate as an independent establishment while the ownership evaluates potential future brand affiliations.

The takeaway

The move demonstrates how independent hotel owners are leveraging private capital to modernize historic properties. Travelers staying in the Entertainment District may see improved amenities and refined interior finishes as the renovation work progresses.