Hotel financing helps your property in many ways. Financing solutions help you make key investments in your property and in your hotel business. The right funding solutions can help you optimize your cash flow so you can spend on important things that can increase your hotel’s profitability. One area where many hotels might consider increasing spending is in employee training.
Hotel Financing Can Help You Invest in Staff Training
It’s been a hard couple of years for the hospitality industry, with many properties dealing with cash flow and funding issues. Hotel lending can help you stabilize your property so you can invest in things like training.
For instance, bridge loans can be a good option if you need short-term hotel financing solutions. These loans offer terms of two to five years and, as their name suggests, they bridge the gap for your finances.
Mezzanine financing is another common loan option for your hotel. These are subordinate to senior debt and typically the term matches the senior loan. This hotel financing option is a hybrid between debt and equity.
The key difference between these two loan options are the terms. In some cases, a bridge loan may serve you better than a mezzanine loan and vice versa. Both these loan options can provide the capital you need to invest in a better quality hotel staff training program at your property.
Why Invest in Employee Training
Many hotels have cut spending on training. Yet, this may not be the right option for your property. Employee training is essential for your hotel’s continued success. In fact, the most successful hotels typically spend more on training than less successful properties. That’s why you should invest in hotel employee training.
Employee training is crucial for many different elements of hotel operations. Naturally, training helps your staff do their jobs better, which is a pretty persuasive reason to invest in a good training program. Keep in mind this also translates to guest experience, frequently making huge improvements on many different markers of guest satisfaction, including cleanliness, ambiance, and service.
Training is also important for keeping your staff. With labor shortages across the nation, many hotels are looking for better ways to retain the employees they currently have. Yet, the hospitality industry often has incredibly high turnover rates. Providing training and growth opportunities are two elements that are often very important to your employees and can influence whether they stay or go.
A good training program can also increase return on investment for labor costs. Labor costs are still one of the highest expenses for most hotels, and you want to make sure you maximize every dollar spent. The right training helps improve performance throughout your property.
Stonehill – Your Hotel Lending Experts
When you need funding for your hotel, contact our team at Stonehill. We are a direct hotel lender with years of experience providing creative financing solutions to properties across the country. Our team has completed hundreds of transactions for everything from acquisitions to hotel construction financing. Get in touch to learn more and discuss your financing needs with our seasoned professionals.