In general, funds from a hotel mortgage must be used for purposes related to the hotel. This could include purchasing the property, renovating or expanding the hotel, or refinancing existing debt.
Some lenders may also allow a portion of the funds to be used for working capital. The specific restrictions will depend on the terms of the mortgage agreement. Misuse of funds can result in default and foreclosure. Always read your loan agreement carefully and consult with a legal or financial advisor if you're unsure about any terms or conditions.