Hotel Financing Terms:
Bridge and Permanent Financing
- Loan Amounts: $2 million to $100 million
- Bridge Loan Rates: Starting at 6%-8%
- Terms: 1-3 years, including interest reserves
- Loan-to-Cost (LTC): Up to 80% LTC, financing 100% of rehab costs
- Closing Timeline: 14-30 days
- Eligibility: Rehabs, Repositions, PIP’s, Reflags, Distressed Assets
- Recourse Options: Both Recourse and Non-Recourse
- Property Types: Flagged and Non-Flagged Hotels
- Additional Financing Options: Mezzanine (Mezz), Joint Venture (JV) Equity, PACE
Construction and Conversion Loans
- Tailored solutions for ground-up construction or hotel conversions.
Bridge Loans
- Rates: Fixed and floating rates starting at 3.5%
- Loan Amounts: $2 million to $100 million
- Fixed Terms: 5/10/15 years, with 25-30 year amortizations
- Loan-to-Value (LTV): Up to 75% LTV
- Eligibility: Rehabs, Repositions, PIP’s, Reflags
- Closing Timeline: 21-40 days
- Recourse Options: Both Recourse and Non-Recourse
- Property Types: Flagged and Non-Flagged Hotels
- Additional Programs: SBA and USDA financing options available
Explore flexible hotel financing solutions to meet your needs, whether you’re acquiring, renovating, or repositioning a hotel property.
Rates And Terms Subject To Change
Hotel Finance: Tailored Solutions for the Hospitality Industry
Financing a hotel requires an understanding of the unique characteristics of the hospitality industry. Whether you’re purchasing a property, undertaking renovations, or refinancing to improve terms, hotel-specific loans are designed to address the operational and financial requirements of this sector.
Understanding Hotel Loans
Hotel loans provide the capital necessary for acquiring, developing, or improving properties in the hospitality sector. These loans are structured with features that account for industry-specific factors such as seasonal cash flow, maintenance demands, and market trends. Common uses include:
- Purchasing or constructing a property
- Funding renovations or upgrades
- Refinancing existing debt
- Providing working capital
Key Features and Lender Criteria
Hotel loans come with terms designed to align with the realities of running a hospitality business:
- Loan-to-Value Ratios (LTV): Higher LTVs help borrowers retain capital while funding significant investments.
- Amortization Periods: Longer periods spread payments over the lifespan of the asset, easing cash flow requirements.
- Rate Options: Fixed or variable rates allow borrowers to match their risk tolerance and financial strategies.
Lenders typically assess:
- Property Performance: Metrics such as occupancy rates, ADR (Average Daily Rate), and RevPAR (Revenue Per Available Room).
- Market Dynamics: The location and economic health of the market where the property is located.
- Borrower Experience: Operators with a strong track record are often seen as lower risk.
- Business Plan: A solid plan that demonstrates how the loan will support growth or improvement.
A Focus on Results
Hotel financing is a practical tool designed to help hospitality businesses grow and succeed. By aligning loan structures with the needs of the property and its operators, these loans provide the financial flexibility necessary to navigate the challenges and opportunities in the hospitality market.
When you’re considering hotel financing, we can help you explore options that align with your objectives and position your business for success.