HOTEL FINANCING MASTERCLASS
WHAT LENDERS PRIORITIZE
• • EXPERIENCE:Your track record in hospitality.
• • CASH FLOW: Pro-forma and historical NOI.
• • LOCATION: Market demand and 'RevPAR' potential.
SBA 7(A):THE VERSATILE CHOICE
• • Best for:Acquisitions & Working Capital.
• • Loan Limit: Up to $5 Million.
• • Key Benefit: Flexible use of funds and government guarantee.
SBA 504: FOR REAL ESTATE
• • Best for: Major construction or long-term assets.
• • Structure: Lower down payments (typically 10-15%).
• • Advantage: Below-market fixed interest rates.
CONVENTIONAL FINANCING
• • Best for: Larger projects ($5M+).
• • Requirements: Higher credit standards and 20-30% equity.
• • Benefit: No SBA fees or government restrictions.
FINANCING THE PIP
• • Critical for franchise renewals and brand compliance.
• • Modernization:Vital for maintaining competitive RevPAR.
• • Funding: Often rolled into a refinance or bridge loan.
BRIDGE TO SUCCESS
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• Purpose: Quick closing or property turnarounds.
• • Duration: Short-term (1-3 years).
• • Strategy: Use to stabilize the asset, then exit to permanent debt.
THE BORROWER'S TOOLKIT
• • STAR Reports (Competitive analysis).
• • Detailed Business Plan & Budget.
• • Resume of Management Team.
• • Personal Financial Statement (PFS).
SUCCESS STRATEGIES
• • Build a strong relationship with a specialty lender.
• • Understand your Debt Yield (NOI / Loan Amount).
• • Over-prepare your market feasibility study.
YOUR HOSPITALITY PARTNER
UNLOCKING CAPITAL FOR YOUR NEXT HOTEL VENTURE.
READ MORE DETAILS : HOTEL FINANCING PROCESS