Hospitality Financing for hotels in 2015 was tough to say the least. However, with continued improvement in employment data loans for hotels and motels should come back fairly rapidly. In general, unlike a hotel loan, hospitality financing for restaurants will remain stagnant save those loans in the working capital category.
The Hotel Loan
One category of hospitality financing that will be especially hot in the coming year is the hotel loan. Hotels in the select service category, those properties with interior corridor and major flags will be the easiest to obtain. Borrowers should expect rates to remain in the low 6% range with loan to value ratio maximums or about 75% and amortizations of around 30 years.
Expect the hotel loan to be fairly easy to close moving forward, especially for refinances and acquisitions of stabilized assets. Bridge loans for the acquisition of distressed hospitality assets will also be available as long as the operators are experienced and easily quality for a standard hotel loan as a take-out.
For more information on hospitality financing and how a hotel loan works, click here. DACL is an expert at closing the hotel loan and understanding the hospitality industry and hospitality financing. Michael Gross, President of Dividend America Commercial Lending and can be reached at 404-549-6756 or by email at .
Hospitality Financing for Acquisition and Rehab is generally easy to obtain in all 50 states and focusing on the markets and submarkets listed in the S&P Case Shiller Home Price Index and the surrounding secondary markets to those cities. We look for opportunities in: Boston, Chicago, Denver, Las Vegas, Los Angeles, Miami, Fort Lauderdale, Orlando, San Diego, New York, San Francisco, Phoenix, Atlanta, Tampa Bay, Detroit, Minneapolis-Saint Paul, Charlotte, Dallas / Fort Worth, Portland, Seattle, Cleveland, Oklahoma City, Jacksonville, Indianapolis, Nashville, Kansas City, Louisville, Milwaukee, New Orleans, Philadelphia, Raleigh, Sacramento, Salt Lake City, San Antonio, San Jose, Saint Louis, Tucson, Austin, Baltimore.