Nationwide Hotel Loan Source facilitating all hotel loan
Hotel Loan - SBA 7(a) Loan: A loan program offered
by the Small Business Administration
that provides financing for small business owners to acquire or start a business.
SBA 7(a) loans have more favorable terms and lower down
payment requirements compared to conventional bank loans,
making them a good option for hotel owners who may not have the collateral or credit history to qualify for a conventional loan.
However, the application process for an SBA 7(a) loan is more complex and time-consuming, and the loan amounts are typically smaller.
SBA 7a Hotel loan to $5mm. SBA 504 / CDC to higher amounts.
Acquisition, Permanent financing / Refinancing, Construction.
Money Hotel Loan. Higher interest rate typically
12 to 36 months, interest rates starting at 6% typically 8% to 12%.
Acquisition, Refinancing / Refi Cash Out, Construction, Land.
Minimum amount $1,000,000.
Loan. Close in as little as 10 work days
Bridge Loan: A short-term loan used to bridge the gap between the purchase of a hotel and the securing of permanent financing.
Bridge loans are usually used by hotel owners who need to
close a transaction quickly, but do not have the necessary
financing in place.
These loans are typically more expensive than conventional loans, with higher interest rates and shorter repayment terms, but they provide a quick source of financing for hotel owners.
Hotel Loan product for those who need to take advantage of an opportunity quickly.
Rates and terms similar to hard money hotel loan products.
Minimum amount $750,000.
Hotel PIP / FF&E Loans.
Loans for mandatory and discretionary hotel maintenance and upgrades.
Minimum amount $1,000,000.
Equity, Mezzanine and Debt / Equity combo hotel loans.
Mezzanine Loan: A type of loan that is subordinated to a senior loan and provides additional financing for the acquisition of a hotel.
Mezzanine loans are typically used in conjunction with a
conventional bank loan and are used to finance a portion of
the hotel purchase that is not covered by the senior loan.
Mezzanine loans usually carry higher interest rates and shorter repayment terms than conventional bank loans,
and are best suited for hotel owners who have already secured a conventional loan but need additional financing.
Equity Financing: A type of financing that involves selling ownership stakes in the hotel to investors in exchange for capital.
Equity financing can be a good option for hotel owners who are not able to secure traditional loans or who prefer not to take on debt. Equity financing provides a source of capital without the need to make loan repayments, but it also involves giving up a portion of ownership in the hotel.
Private Equity Loan: A loan provided by a private
equity firm, typically at a higher interest rate than
traditional bank loans.
Private equity loans are typically used by hotel owners who need access to capital quickly and do not have the time or resources to secure a conventional loan.
Private equity loans are usually more expensive than conventional loans, but they provide a quick source of financing without the need for a lengthy application process.
Minimum amount $5,000,000 Equity / Mezzanine. $10,000,000+
$10,000,000 minimum Debt Equity Combo.
A loan secured by a pool of commercial mortgages, often used by institutional investors and lenders for large hotel acquisitions.
CMBS loans are typically used for larger, more established hotels and provide access to larger loan amounts compared to conventional bank loans.
Interest rates for CMBS loans are typically based on market rates and can be fixed or variable. Repayment terms are usually long-term, ranging from 10 to 30 years.
Hotel Loan Conventional Bank Loan:
This is the most traditional type of loan for acquiring a hotel, offered by commercial banks. The loan amount is determined based on the hotel's financials, including its revenue and cash flow, as well as the borrower's credit history and financial stability. Interest rates for conventional bank loans are typically based on market rates and can be fixed or variable. Repayment terms are usually long-term, ranging from 10 to 30 years. This type of loan is best suited for well-established hotels with a proven track record of stable revenue and cash flow.
Acquisition, Refinance and Construction.
The longest loan process typically 30 to 60 days.
Minimum loan amount $1,000,000.
Due diligence items required for a hotel acquisition loan:
Examples of due diligence items required for a hotel acquisition loan include:
Financial statements: Balance sheet, income statement, cash flow statement, and tax returns.
Market analysis: Market trends, competitor analysis, demand and supply analysis.
Property inspections: Physical condition of the property, maintenance history, and code compliance.
Leases and contracts: Review of existing leases, operating agreements, and management contracts.
Insurance: Review of liability and property insurance policies.
Environmental assessments: Review of hazardous material reports and assessments of potential environmental risks.
Legal documents: Deeds, mortgages, zoning certificates, and other legal documents related to the property.
Labor and employment records: Employee handbooks, union agreements, and payroll records.
Brand standards: Compliance with franchise and/or brand standards.
Marketing and sales data: Analysis of occupancy, average daily rate, and revenue per available room. An STR report will have this data.
What is a hotel STR report and what does the report detail?
A hotel STR (Smith Travel Research) report is a market analysis and benchmarking tool used by the hospitality industry. The report provides detailed information about a hotel's performance and competitive market position.
The report typically includes the following information:
Occupancy rate: The percentage of rooms occupied over a given period of time.
Average daily rate (ADR): The average amount of money a guest pays per night for a room.
Revenue per available room (RevPAR): The average amount of money a hotel generates per available room over a given period of time.
Room supply: The total number of rooms available in a market.
Room demand: The total number of rooms occupied in a market.
Market segmentation: Information about the different types of guests (e.g. business travelers, leisure travelers, etc.) and their impact on the market.
Competitor analysis: Information about other hotels in the same market, including occupancy rate, ADR, and RevPAR.
Market trends: Analysis of market trends over time, including changes in occupancy, ADR, and RevPAR.
The information in a hotel STR report is used by hotel owners, operators, and investors to make informed decisions about investments, revenue management, and marketing strategies. The report is widely recognized as a reliable and comprehensive source of market intelligence in the hospitality industry.
Hotel Construction Loans
Hard money hotel construction loans.
C PACE hotel construction loans with full or non recourse senior debt.
SBA 504 CDC hotel construction loans.
Hotel PIP and Rehab loans.
USA 50 states and Puerto Rico hotel construction loans.
Lower hotel construction loan amounts considered on a case by case basis.
We only work with trusted proven hotel construction loan providers.
Whether you need to quickly get a hotel loan so you don't
miss out on an opportunity or you
want to build a new hotel from the ground up and need a loan we can help you.Our team
has been facilitating hotel and other loans since 1988 and we have a trusted stable
of lenders for hotel loans as well as most other commercial property type loans.
We can arrange a land loan to a construction loan to a stabilization period loan and finally a
permanent hotel loan for your new property.
From start to finish we can arrange a loan for every stage of your new hotel.
While loans for flagged hotels are preferred hotel-loan.com can also finance loans for boutique hotels.
For all hotel acquisition loans we suggest the borrower include in their due diligence STR reports,
title search, 2 years I%E, P&L as well as a flag FDD if the hotel brand will change.
Having these items when applying will help expedite the hotel loan process.
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