Hotel Loans

We are one of the highest volume mortgage brokers in the hotel industry, with past loan amounts ranging from $3 million to $280 million.   Regardless of size, each client receives the same hands-on approach, where we quarterback the entire loan process from start to finish.   Lenders value our business and aggressively compete to provide the lowest rates and maximum proceeds.

Permanent Loans

We track AAA bond spreads and lenders’ break even profitability to get the lowest possible interest rates while pushing for max proceeds.

Hilton Garden Inn

Bozeman, Montana$11,500,000Permanent Loan

Largo Hotel Portfolio

Largo, Florida$15,350,000Permanent Loan

The Resort at Paws Up

Greenough, Montana$15,750,000Permanent Loan

What is a permanent loan?

Permanent loans are almost always non-recourse.  For maximum cash out, CMBS is the only consistent option with LTV’s up to 70%.  Life companies are active but at lower leverage (55% to 60% LTV) and higher amortization.

A permanent loan will have a fixed interest rate for the life of the loan.  All permanent loans have onerous prepayment penalties either with defeasance or yield maintenance.

You need to be very careful about doing a permanent loan if you are considering selling your hotel, and you should consult with F10 regarding loan amount and assumption features.

Bridge Loans

We have balance sheet lenders that fund higher leverage, which can be ideal for PIPs, flag conversions or other value-add situations.

Embassy Suites Portfolio

Five Hotel Portfolio$170,000,000Bridge Loan

Why should I consider a bridge loan?

The number 1 reason for choosing a bridge loan is flexibility.  Bridge loans are typically structured with a 3 year term and two, 1 year extension options.  The rate will float over a LIBOR index, and the payments will be interest only. During the first 18-24 months of the loan, there will be a declining prepayment penalty.

Bridge loans are great for value-add opportunities, such a PIPs or flag conversions.  After the owner’s business plan has been executed, a sale or refinance can be pursued without penalty.

Because of the expected increase in collateral value, bridge lenders will advance up to 75% or 80% of the total capitalization.

Construction Loans

In order to succeed in a market that is rapidly drying up, we scour the country to find lenders with available construction capacity.

One Clinton

Brooklyn, New YorkConstruction Loan$280,000,000

Hyatt Regency Lake Washington

Renton, WashingtonConstruction Loan$70,000,000

Home2 Suites

Statesboro, GeorgiaConstruction Loan$8,636,000

Can I qualify for a construction loan?

Securing a construction loan is getting increasingly difficult.  Recourse loans are available from bank syndicates, national banks, regional banks and SBA 504, depending on the loan size and the borrower’s development experience, net worth and liquidity.

Non-recourse options are available but are expensive.  These lenders are also quite particular about development experience. In addition, the non-recourse lender will require a completion guaranty.