Hotel Construction Loans Are Available
Updated April 28, 2013:
It seems that the hotel financing market has reached a turning point and lenders are coming back to the market – at least in the world of SBA and USDA lending.
Lenders who have been on the sidelines while values dropped all around the country are now considering transactions for experienced hoteliers building in the right markets.
Hotel Construction Financing Available on Very Limited Basis
For the past few years whenever you said the words “hotel” and “construction” to a lender in the same sentence you were typically greeted with either laughter or silence. Yes, it is true “hotel construction” was the mother of all four letter words in the SBA LDOT – the Lenders Dictionary of Offensive Terminology – (not an actual publication 🙂 )
If you have the following qualifications then you have a good shot at getting financing from a well capitalized lender:
- you are an are experienced hotelier operating at least one or a number of profitable properties (or you have done so in the recent past and have a good team)
- you have solid personal financials and a decent amount of equity (typically 20%)
- you are building a hotel with a good flag in an area where the local economy is doing well
Hotel Bridge Loans, Hotel Conversion Loans and Hotel Renovation Loans Are Also Available
In another sign that the hotel lending market is returning to some degree of normalcy, bridge loans are available to finance hotel acquisitions, renovations and conversions including PIPs, FF&E and energy efficient equipment.
Please visit our main site here, for more information or drop me an e-mail if you would like more info:
or call: 1-800-414-5285