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Managing Hotel Construction Costs

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Consider all of the costs for your construction project and choose the best hotel financing for you.

With ever rising hotel construction costs, it’s important to manage your expenses and find the best hotel financing for your needs. While you may be tempted to cut corners to save money, there are many other effective ways you can save without skimping on important details. First, you should make a detailed plan about your hotel construction project. Then, find the hotel financing that makes the most sense for you. Don’t be afraid to shop around for the best, most experienced lending company for your hotel construction financing.

Manage Hard Costs of Hotel Construction

The hard costs of your hotel construction is where most of your investment will go. Hard costs include building materials, equipment, and labor for your project. Therefore, before you determine how much hotel financing you will need, it’s important to do your research and get accurate estimates for your hard costs.

When deciding on your hotel design and construction, you should shop around for estimates from reputable contractors. Additionally, you should consider material costs and their lifespans. While you may be tempted to opt for cheaper materials and labor, this can hurt you in the long run. Low quality materials generally have shorter lifespans and may require costly repairs more frequently than high-quality building materials. Additionally, you will want to hire a contractor who is experienced and knowledgeable to ensure the best results for your hotel construction.

Soft Costs for New Hotel Construction

By contrast, soft costs include things like permit fees, survey costs, construction insurance premiums, and taxes. Failing to pay any of these fees can result in heavy fines, or can even halt your construction process. Therefore, if you are concerned about managing these costs, you may want to hire a design build construction contractor who will take care of all of this for you. In the end, it may be a more cost-effective option. Take this into consideration when determining your budget and how much hotel financing you will need for your project. If you decide to go with a design build contractor, ensure that you receive reliable estimates for their services before acquiring your hotel construction financing. This way, you will not be short on capital when the time comes to construct your hotel.

Find the Best Hotel Financing for Your Project

Finally, you will want to find the best hotel loans for your construction project. To do so, you should weigh your options and do your research about different hotel financing options. Additionally, you should look for a lender who has experience in the hospitality industry who can find the right solutions for your new hotel construction.

At Stonehill Strategic Capital, we are a direct hospitality lender with industry-specific experience and knowledge. We have completed over 100 transactions totaling over $1.5 billion in hotel loans. Our experts understand the nuances of the hospitality industry and can help you find solutions for your hotel financing needs. We provide creative financing solutions to help your hotel achieve success. To learn more and schedule a consultation with our professionals, call us today at (713) 666-2544. We look forward to working with you.

Best PIP Practices to Get the Most Out of Your Investment

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With the right hotel loans and property improvement strategy, you can maximize the benefits of your PIP renovation.

Property improvement plans, or PIP’s, can be expensive. Therefore, you should try to get the most out of your renovations and hotel loans. PIP’s address many different things. For example, mechanical systems, guest rooms, security systems, and landscaping. These renovations can help your hotel fit your brand and also increase profit and customer experience.

In recent years, PIP’s require more costly renovations, as many brands are trying to give their sub-brands unique identities. Because PIP expenses are increasing, you want to get the most bang for your buck. Make sure your improvements increase return on investment. To do so, choose elements that positively impact profitability and choose the correct hotel loans for your situation.

Choose Design Elements for Longevity

When creating a plan for your renovations, you want to select items and improvements that are durable and long-lasting. This can include furniture, lighting, plumbing, or really anything in your PIP. If you do this, you can increase your profits by keeping your hotel in great condition for as long as possible. Though you will likely require more hotel financing for these high-quality features, it will decrease the amount of money you have to spend later on to replace broken or worn products.

Surpass PIP Minimum Requirements

Another way to get the most out of your PIP is to go above and beyond the minimum requirements. This may seem like the opposite of what you should do for better returns. However, at the end of the day, property improvement plans are designed to help your bottom line. Therefore, if there are other things you can do to help you compete in the market or draw in more customers, this is the perfect time to make these enhancements. For example, maybe a new coat of paint isn’t required for your plan, but you may consider doing this while you are already renovating.

Plan Costs and Research Hotel Loans Ahead of Time

You don’t want to be surprised by the bill at the end of your  project. Therefore, be sure to do plenty of research and find the best contractor for your improvements. Additionally, make sure you request detailed estimates for your renovations so you know exactly how much capital you need to enhance your hotel.

Finally, be sure to look at all of your financing options and choose the hotel loans that make the most sense for you. Direct hotel lenders can help you with this process, as they have the industry knowledge to help you determine the best way to fund your improvements.

At Stonehill, we specialize in direct hotel lending. Our expert team can help you get the funding you need to provide the best service to your guests. We offer a range of options for hotel loans, from permanent loans to mezzanine financing. We can help you find the best solution for your financing needs. Call us today at (713) 666-2544 to schedule a consultation with our professionals. We are here to serve you.

Adding a Restaurant to Your Hotel Can Help Boost Revenue

With the rise of accommodation-sharing sites, more and more hotels are looking for unique ways to increase revenue. Using hotel financing, you can build an integrated restaurant to help your bottom line, even during low seasons. Designing a place that both travelers and your local community will love to dine in can help you stay competitive in the hospitality market.

Create a Restaurant Your Local Community Will Love

Most of the hospitality industry focuses on appealing to travelers. However, a well-designed hotel restaurant can attract customers in your local area as well. The key is to establish an eatery that fits into the local restaurant scene. Many hotel restaurants focus on how to serve those already staying in their rooms. However, taking a more creative approach can draw in more people and increase your profits. Hotel financing can help fund your efforts to build a noteworthy hotel restaurant that even people a block away will come to.

Restaurants Can Bring in Revenue During Low Seasons

Certain times of the year mean a dip in business for hotels, as people are less likely to travel. However, even in these months, you can still bring in revenue. Imagine if you continued to be busy and maximize profits during low seasons. A restaurant inside your hotel where everyone wants to eat, even if they aren’t staying in one of your rooms, can increase your revenue. Hotel loans can help you craft a gorgeous interior where you can serve high-quality food to hotel guests and non-guests alike.

Utilize Hotel Financing to Build your Hotel’s Restaurant

The initial costs of building a hotel restaurant can seem daunting. However, with the right hotel loans, you can make this lucrative opportunity reality. This way, your incorporated eating establishment will have time to get up and running and generate income for your business. To ensure a successful renovation or expansion for your hotel, speak to a hotel financing company that specializes in lending to the hospitality industry. This will help you find the best options for your addition.

At Stonehill, we specialize in direct hospitality lending. We have a proven track record for delivering the best financing solutions for our customers. Stonehill offers hotel construction financing, permanent loans, bridge loans, and a variety of other loan programs to help your business. Our dedicated professionals can help you find the ideal choice for your projects or acquisitions. Call us today at (713) 666-2544 to schedule a consultation. We look forward to the opportunity to work with you. 

Revenue Increasing Renovations: How Hotel Loans Can Help

Adding certain features to your hotel can help you increase revenue and stay competitive in the hospitality market. Hotel loans are a great way to fund these renovations and updates to boost your business and fill more rooms. Make sure your renovations will attract customers at the price point you want. There are a few upgrades to consider when deciding where your renovation priorities are.

Revenue Increasing Features

It can be difficult to stand out in the hospitality industry. However, adding or updating the following amenities can help you win out over the competition:

  • Inviting entrances
  • Luxurious in-room bathrooms
  • Ample power outlets
  • Recreation facilities
  • Dining areas
  • Wellness spas

Since these additions to your hotel can appeal to many different people, you can include many different types of guests, like business travelers, vacationers, and honeymooners. The investment could pay off in huge ways for your company. These features and renovations can help increase your revenue and bring in more guests. Therefore, you want the right hotel financing to make these things a reality for your hotel.

Using Hotel Loans To Make These a Reality

With the help of hotel loans, you can add the features that your guests want. Depending on which amenities you are going to add, there are a number of hotel financing options. One of the first steps is to decide how much capital you will need to create these spaces and conveniences. Make a list of what needs to be renovated and speak to your preferred contractor about estimates for these changes. Then, think about what your budget will be. Finally, discuss your needs and budget with your preferred hotel lending company to see which hotel loans are best for you.

At Stonehill Strategic Capital, we offer practical hotel financing solutions. We can help you with bridge loans, permanent loans, mezzanine financing, preferred equity lending, hotel construction financing, or PACE lending to suit your needs. Our team will discuss your requirements and options to find the most appropriate hotel loan for you. Give us a call today at (713) 666-2544 to schedule a consultation. We look forward to the opportunity to serve you.

The 5-Star Promise: Implementing Safety Devices in Hotels

Hotel Construction FinancingOn September 6, 2018, the American Hotel & Lodging Association (AHLA) announced its 5-Star Promise initiative. Finding the right hotel construction financing options will help you upgrade security measures as a part of this program. Also, it can create the best outcomes for your hospitality company and the safest environment for your guests and your staff members.

What Is the 5-Star Promise?

The AHLA announced the 5-Star Promise initiative as part of its ongoing efforts to promote the safest possible settings for employees in the hospitality industry. Some of the most important elements of this voluntary program include:

  • Establishing policies banning sexual harassment and posting those policies in multiple languages for employees
  • Training and educating employees about sexual harassment
  • AHLA training programs for safety, security and diversity in the workplace
  • Partnerships between AHLA and the National Alliance to End Sexual Violence, Polaris, End Child Prostitution and Trafficking and other agencies and organizations to focus on workplace safety and the end of sexual violence and child abuse

The AHLA also recommends that employees are given safety devices as part of participation in the 5-Star Promise initiative. Surely you want to promote safety for your employees. However, depending on the how big your staff s and the types of security devices needed, hotel financing solutions may be necessary to create a safe environment in line with AHLA’s suggestions.

Participation on the Rise

Since it was announced, participation in the 5-Star Promise program has increased by 230%. Currently, about 20,000 properties have committed to the principles of the 5-Star Promise. They are putting the safety and well-being of their employees at the top of their priorities. The right hotel loans can provide financial support for these and other activities in the hospitality industry.

Finding the Right Hotel Construction Financing Solutions

Renovating, upgrading, and adjusting safety in your properties is an ongoing process. These projects mean you want the most practical hotel construction financing options available. Working with a company that specializes in hotel financing is the best way to manage expenses of this nature. Your hotel lending company will provide you with the right solutions for short-term and long-term lending arrangements in the hospitality industry.

If your company needs the best and most practical options for hotel funding, Stonehill is the best and most practical solution for your needs. We are direct lenders with a commitment to quality and customized arrangements for our customers. Call us today at 713-666-2544. Our team will be happy to work with you to create the most practical financing solutions for your needs.