Hotel and motel financing basics means getting the financing for your property with terms you can afford. Whether you are looking for money to buy a new property or restoring a property you already own, finding financing can be difficult in this business.
Most companies require good credit and a business plan before they will lend for a new property. Renovation loans may be a bit easier to obtain, since you already have a proven record of accomplishment with your business. You will still need to advise whether this is a loan to add to your hotel or if you will use the loan to buy equipment or furniture. Look at the following when choosing hotel and motel financing basics:
1. Find commercial hotel loan sources for your new property.
2. Search for companies that provide hotel refinancing.
3. Choose hotel and motel financing for your updating project.
Locate hotel mortgage lenders to finance your new hotel or motelLenders will require excellent credit and a business plan since the typical motel loans will be in the millions of dollars field. After you prepare your plan, seek your loan from qualified lenders.
Utilize hotel financing companies who specialize in hotel expansion loansHotel properties may seem adequate at the time of purchase but often once business is booming an expansion loan is in order. Find the finance companies who specialize in these loans to make your project happen.
Small Business Administration (SBA) may be able to help you with a financial assistance program. They can also recommend financial companies suitable for the type of loan you need. Consider taking their free online course to see how SBA can help your business. PKF Hospitality Research provides reports with considerable detail on the sales of hotels properties. Find out which property sold for how much before you begin your project.
Secure a renovation loan from hotel lenders for the updates your property needsNew beds, bathroom fixtures, desks, chairs and TV sets are just some of the many items a hotel room offers to its customers. They wear out over time and require extensive capital to replace. Find the financial companies that support these types of loans.
Hotel&Motel Management provides an article explaining ways to get needed financing when your first loan prohibits secondary financing. Read this article and others in this online newsletter for hotel and motel owner/operators. All Options provides a list of financial companies within your zip code that may have a program for the loan you need. Start by typing in your zip code.
- Compare rates when shopping for a commercial hotel loan. A small difference in rate can add up to tens of thousands of dollars saved over the life of the loan.