Every hotel will need to renovate at one point or another. Many historic properties are well overdue for renovations and capital improvements. It’s important to find the right hotel financing options to renovate and update a historic hotel. Let’s discuss these projects for your property.
Hotel Financing Solutions for Historic Hotel Renovations
There are many potential financing solutions for historic hotel upgrades. There may be one type of financing that works better for your property than another. Our originators can help you explore the different options and find financing that works well for your needs.
For example, some hotel loans that may work well for a historic hotel renovation project include:
- Bridge loans
- Mezzanine loans
- Preferred equity loans
- PACE loans
These types of hotel financing are frequently used for renovation and construction projects. Also, you can use these types of financing whether you are renovating a newly acquired historic property or are making improvements to a hotel that you already own.
Why Renovate Historic Hotels?
Of course, this discussion about financing begs the question, why should we renovate, update, and preserve historic hotels? The key thing to remember is that you want your hotel to look historic, not old. If your property features chipped paint, peeling wallpaper, and musty smells from the past, these can all detract from the many charms of a historic hotel. Also, though hotels may be historic, guests still expect many of the conveniences of modern life. For instance, high performance HVAC systems and an adequate number of electrical outlets for chargeable devices.
Owning a historic hotel offers many advantages, including killer locations and unbeatable character. Yet, they can also come with some headaches, like aging building systems and construction that doesn’t comply with modern codes for safety and accessibility. Typically, renovations help correct these issues so you can focus on providing amazing service to guests.
If you are opening a “new” historic hotel, then it can also save you a lot of time compared to new construction. Whether you take an old warehouse and renovate it into a hotel or take an aging hotel and update it to give it a new lease on life, this is often much faster and more economical than new construction. With the right hotel financing options, you can start taking your first reservations ASAP and getting a return on your investment.
Your Hotel Lending Experts at Stonehill
Our hotel lending professionals at Stonehill offer years of expertise to help you find the right loan solutions for your property. We specialize in providing financing to the hospitality industry and have provided over $2.1 billion in loans and investments to hotels across the country. We are a top hospitality lender and offer creative financing solutions to perfectly suit your needs. Contact us today to discuss your financing needs with our team.