Commercial Real Estate Loans

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Commercial Mortgage Loans Misc

Hotel Loan and Hotel Lenders


We are still closing hotel loans if the loan amount is below $2,000,000. 

Hotel loans are one of the more complicated arenas in the commercial mortgage industry.  Loan programs, guidelines, and pricing vary widely among lenders depending on many factors; such as if the property is flagged or unflagged, loan size, age of subject property, town population, interior corridor, historical financial performance, STAR ratings, etc. Hotel lenders appetite for this industry fluctuates widely as well, as the industries come in and out of favor more than with typical building types.

Hotel Loans Conventional

We have access to some of the best programs in the market.  Loan to values on conventional programs can still go as high as 70% on rate and term refinances and up to 65% on cash out refinances. 

  • Loan to Value is up to 70% of appraised value
  • Cash-out up to 65% of appraisal value
  • Fixed periods from 3, 5, 7, 10 and 25 years.
  • Loan amounts from $400,000 - $10,000,000

Hotel  Loans via SBA 504 and SBA 7a

The 504 and 7A loan programs, which are guaranteed through the Small Business Administration (SBA) provides some of the best finance options for borrowers seeking acquisition financing. The primary benefit of the 504 program is twofold, high leverage (85% LTV), long term, fixed rate financing.  The 7a program is geared towards smaller loans but still provides high leverage purchase financing.   

Loan Structures

  • Financing available on projects up to $10,000,000
  • Bank financing typically provides a first mortgage of up to 50% of the total project cost.  This loan can range from $500,000 to $6,000,000.
  • The SBA, through a Certified Development Company (CDC) provides up to
    35% of total project cost in a second lien position.  This loan can range from $300,000 to $2,000,000.
  • First Mortgage - up to 25-year term on your purchase with fixed and variable interest rates available.
  • Second Mortgage - up to 20-year term for real estate.  Fixed rate is determined at SBA guaranteed 504 debenture sale

Fees

  • First Mortgage - fees are always market competitive.
    Second Mortgage - approximately 2.75% + legal review fee. This fee is financed in the loan
  • Fees also include customary closing costs, such as appraisal & environmental report, construction loan fees (if applicable), and bridge loans.

Hotel Loan Eligibility

Eligibility, pricing and loan programs boil down to the following:

  • Management Experience
  • Cash Flow Coverage
  • Flagged or Un-Flagged Hotel
  • Equity Injection (cash down)
  • Location of prospective Hotel
  • Personal Credit Score
  • Total amount financed
  • SBA or non-SBA loan

Get real answers now on your hotel loan by taking a few minutes to fill out the mini commercial loan application.  

 

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