With the right hotel financing, you can be successful in the competitive hospitality industry. Of course, first you’ll have to meet with lenders to obtain hospitality loans. Once you have determined that you need hotel financing, the next step is to research which type of hotel loans will work for you and find a lender. Next, you’ll likely need to meet with your lenders before you receive your funding. Here are some tips to get ready for a discussion with your lenders.
Talking to Your Lender About Hotel Financing for An Exiting Brand
First, you’ll need to determine the purpose of the loan and how you will use your hotel financing. This is probably the most important step, as it gives your lenders insight into what they are funding. For example, if you are planning to make improvements to an existing hotel, give your interviewer specifics about what renovations you will perform.
Additionally, you should have some market research and information about your competitors to show how financing will help you achieve greater success. You’ve likely already done all of this by the time you know you need hotel loans. However, bringing this information to your meeting can help everyone in the room see your vision and will provide impactful evidence for why it makes sense to approve your hotel financing. Coming to a meeting fully prepared with this information can streamline the approval process.
Meeting with Lenders for Construction Financing
Interviews for hotel construction financing are often quite similar. Above all, the main thing your lenders are looking for is the idea that you have given substantial thought to your financing options, what you need, and how it will help you succeed. If you’re a hotel developer, this likely means providing more than just your floorplans. Oftentimes, your hotel construction financing lenders are looking for information about how your hotel will stand out in the market. Detail what will be unique about your hotel to help your lenders see your vision.
In addition, another thing that your lender is looking for is an estimated budget for your hotel construction. Oftentimes, it can be difficult to adequately evaluate how much a project will cost. However, an easy way to help you through this project is to break down the budget into smaller pieces. You should also talk to contractors about the cost of each component or service. This can help you understand exactly how much hotel construction financing you will need. It also shows your interviewer that you’ve researched your lending requirements and have a plan in place.
If you’re ready to start your hotel loan process, the professionals at Stonehill offer direct lending to the hospitality industry. We have provided over 1.5 billion in hotel loans since 2014 and offer a wide variety of options that will suit your funding needs. Because we work specifically with the hospitality industry, we have the knowledge and experience you need on your side. So, if you’re looking for a strategic hotel lending partner, contact our experts to discuss your financing needs. At Stonehill, we are here to serve you.