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.