Acquiring the right hotel construction financing is essential to achieve solid returns on your financial investment. A thorough approach will help your company secure the best loan options for an acquisition, construction or renovation project. A few key strategies are required to bolster your chance of obtaining competitive loans and terms.
Know What You Want
The first step in your loan acquisition process is to determine the amount of funding needed and terms that will be most favorable. Achieving a clear idea of what is needed helps tailor the loan application to your own specific set of needs.
Organize Your Documentation
Before applying for hotel financing, be sure to organize data and documentation in a clear and easy-to-understand way. Preparation and organization give a positive impression on potential lenders, which will increase the likelihood of acquiring hotel loans on the terms you prefer.
Create an Executive Summary
An executive summary is a condensed version of the details of your project plan and loan proposal. This document is designed to streamline the evaluation process for lenders. An executive summary makes it easy for lending companies to assess your financing proposal quickly. This may increase the odds of success in acquiring preferable hotel construction financing.
Perform the Necessary Research
A competitive set is a list of properties that are comparable with the hotel property your company intends to develop. Obtaining historical data and details on available amenities with competition will help your company compare market trends to support your lending request. Market research on average rates, revenue and occupancy levels ensures a profitable investment and supports the funding requests to lenders.
At Stonehill Strategic Capital, we specialize in providing lending options for companies throughout the hospitality industry. We offer bridge, mezzanine, permanent, preferred equity and Small Business Administration lending options tailored to the precise needs of our clients. As a leading direct hotel lending institution, Stonehill provides the best solutions and the proven experience for your next project. Call us today at 713-666-2544 to discuss hotel construction financing with our knowledgeable loan originators. We are here to serve you.