Tap To Call

Using Hotel Loans for Recapitalization

Hotel Loans – Stonehill
Hotel loans help you gain back cash flow and restructure your capital stack to help you do more with your business.

When you think of hotel loans, you likely think of the debt you take out when you first began. However, hospitality loans can also help you recapitalize your business. Hotel owners should always be looking for restructuring options as a proactive step toward keeping your capital stack optimal. Therefore, learn more about hotel loans and how they can help you rearrange your finances. 

Benefits of Recapitalization

Recapitalization helps you maximize your cash flow, which is always a positive thing in the hospitality industry. Using hotel loans to recapitalize gives you the ability to do many different things. For example, larger corporations can expand or tap into new markets with the right hotel loans for recapitalization. Smaller or newer hotels may recapitalize to have the capital available to expand their staff or invest in new equipment.

Additionally, many in the hospitality industry use hotel financing to help increase their stock price. If your stock price falls suddenly, you likely need to act fast. Quickly recapitalizing allows you to buy back your shares to increase the demand. Most often this results in rising stock price. Therefore, you should be prepared to recapitalize at any point so you can quickly resolve any issues your hotel may face.

Hotel Loans for Recapitalization

So, recapitalization allows you to raise money by restructuring your capital stack. However, which hotel loans are right for your recapitalization? Generally, hotel owners use one of two common hospitality loans to recapitalize: mezzanine or preferred equity financing.

Mezzanine hotel financing allows you to add debt capital to your financing structure without giving up equity. To acquire mezzanine financing, there needs to be an inter-creditor agreement before you’re approved for this hotel loan.

By contrast, preferred equity doesn’t require an inter-creditor agreement with your senior lenders. Instead, it is an equity investment for your hotel lender. Depending on what you are trying to achieve from your recapitalization, choosing the right hotel loans and hospitality lender is imperative for your hotel. Choosing the situation that suits your needs can make or break your hotel. Therefore, work with a direct hospitality lender with experience in the industry.

At Stonehill, we provide innovative hotel financing solutions for a wide range of uses. From acquisitions, recapitalizations, and hotel construction financing, our experts have the knowledge and insight you need. Our team helps you find the best financing options for your needs. We help you find creative financing opportunities that will help you succeed now and in future. Contact the experts at Stonehill today to learn more and start your approval process. We look forward to the opportunity to work with you.

Preparing for a Meeting with Your Hotel Financing Lenders

Hotel Financing - Stonehill
Get ready for a meeting with your hotel financing lenders. The more prepared you are, the better you will feel.

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.

Using Hotel Loans to Modernize Guest Check-In

Hotel loans – Stonehill Strategic Capital
Guests are looking for the ability to check-in and access their room from their mobile devices. Use hotel loans to stay up-to-date with these features.

Today’s travelers expect more from the hospitality industry. Luckily, mezzanine hotel loans offer an easy way for you to keep up with guest demands and desires. For example, hotel loans are an easy way to make improvements like smart phone check-in and guest room access. These updates provide many benefits that can help your bottom line.

Mezzanine Hotel Loans Allow You to Make Upgrades

As a direct hotel lending company, we understand the hospitality industry. Mezzanine hotel loans are the perfect solution for upgrades and renovations you need to stay competitive. Cash-flow issues shouldn’t stop your progress. In fact, these issues could aggravate available funds by sending travelers to your competitors. For example, mezzanine debt can be your solution for modernizing your check-in and guest room access process. Surveys indicate that 60% of travelers will book with a hotel that allows them to use their smart phones for room access and check-in over one that doesn’t. Therefore, you can’t afford to miss out due to the upfront costs associated with these improvements. Use hotel loans to upgrade your property for better guest experiences and reduced operating costs.

Smart Guest Check-In and Room Access Improves Guest Experience and Reduce Operating Costs

Smart phone room keys can increase customer satisfaction rates by 7%. Therefore, you can use mezzanine financing to boost customer satisfaction and provide a better experience for your guests. Instead of long wait-times and overwhelming your front desk staff, mobile check-in streamlines the process. Surveys found that 68% of travelers find it dissatisfactory to wait in line for the front desk for more than five minutes. Therefore, you can improve guest experiences using smart technology for your hotel.

Additionally, an investment in mobile check-in using mezzanine hotel loans can save you on operating costs. Hotels save an average of $1000 a month on plastic RFID cards alone when they switch to smart phone room keys. Smart check-in also allows your management team to better foresee their staffing needs, which can also have positive effects on your bottom line. If you’re ready to make improvements to your hotel, you’ll need to work with an experienced hotel lending company to find the best financing solutions for you.

At Stonehill Strategic Capital, we provide practical options for your hotel funding needs. Our team can arrange creative opportunities for acquisitions, renovations, recapitalizations, and hotel construction financing. As the market leader for hospitality lending, we understand your unique challenges and work with you to find financing that works best for you. Contact us today to see how we can help your hospitality property achieve more. We are here to serve you.

Managing Hotel Construction Costs

hotel financing - Stonehill
Consider all of the costs for your construction project and choose the best hotel financing for you.

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.

Best PIP Practices to Get the Most Out of Your Investment

hotel loans - Stonehill
With the right hotel loans and property improvement strategy, you can maximize the benefits of your PIP renovation.

Property improvement plans, or PIP’s, can be expensive. Therefore, you should try to get the most out of your renovations and hotel loans. PIP’s address many different things. For example, mechanical systems, guest rooms, security systems, and landscaping. These renovations can help your hotel fit your brand and also increase profit and customer experience.

In recent years, PIP’s require more costly renovations, as many brands are trying to give their sub-brands unique identities. Because PIP expenses are increasing, you want to get the most bang for your buck. Make sure your improvements increase return on investment. To do so, choose elements that positively impact profitability and choose the correct hotel loans for your situation.

Choose Design Elements for Longevity

When creating a plan for your renovations, you want to select items and improvements that are durable and long-lasting. This can include furniture, lighting, plumbing, or really anything in your PIP. If you do this, you can increase your profits by keeping your hotel in great condition for as long as possible. Though you will likely require more hotel financing for these high-quality features, it will decrease the amount of money you have to spend later on to replace broken or worn products.

Surpass PIP Minimum Requirements

Another way to get the most out of your PIP is to go above and beyond the minimum requirements. This may seem like the opposite of what you should do for better returns. However, at the end of the day, property improvement plans are designed to help your bottom line. Therefore, if there are other things you can do to help you compete in the market or draw in more customers, this is the perfect time to make these enhancements. For example, maybe a new coat of paint isn’t required for your plan, but you may consider doing this while you are already renovating.

Plan Costs and Research Hotel Loans Ahead of Time

You don’t want to be surprised by the bill at the end of your  project. Therefore, be sure to do plenty of research and find the best contractor for your improvements. Additionally, make sure you request detailed estimates for your renovations so you know exactly how much capital you need to enhance your hotel.

Finally, be sure to look at all of your financing options and choose the hotel loans that make the most sense for you. Direct hotel lenders can help you with this process, as they have the industry knowledge to help you determine the best way to fund your improvements.

At Stonehill, we specialize in direct hotel lending. Our expert team can help you get the funding you need to provide the best service to your guests. We offer a range of options for hotel loans, from permanent loans to mezzanine financing. We can help you find the best solution for your financing needs. Call us today at (713) 666-2544 to schedule a consultation with our professionals. We are here to serve you.

Adding a Restaurant to Your Hotel Can Help Boost Revenue

With the rise of accommodation-sharing sites, more and more hotels are looking for unique ways to increase revenue. Using hotel financing, you can build an integrated restaurant to help your bottom line, even during low seasons. Designing a place that both travelers and your local community will love to dine in can help you stay competitive in the hospitality market.

Create a Restaurant Your Local Community Will Love

Most of the hospitality industry focuses on appealing to travelers. However, a well-designed hotel restaurant can attract customers in your local area as well. The key is to establish an eatery that fits into the local restaurant scene. Many hotel restaurants focus on how to serve those already staying in their rooms. However, taking a more creative approach can draw in more people and increase your profits. Hotel financing can help fund your efforts to build a noteworthy hotel restaurant that even people a block away will come to.

Restaurants Can Bring in Revenue During Low Seasons

Certain times of the year mean a dip in business for hotels, as people are less likely to travel. However, even in these months, you can still bring in revenue. Imagine if you continued to be busy and maximize profits during low seasons. A restaurant inside your hotel where everyone wants to eat, even if they aren’t staying in one of your rooms, can increase your revenue. Hotel loans can help you craft a gorgeous interior where you can serve high-quality food to hotel guests and non-guests alike.

Utilize Hotel Financing to Build your Hotel’s Restaurant

The initial costs of building a hotel restaurant can seem daunting. However, with the right hotel loans, you can make this lucrative opportunity reality. This way, your incorporated eating establishment will have time to get up and running and generate income for your business. To ensure a successful renovation or expansion for your hotel, speak to a hotel financing company that specializes in lending to the hospitality industry. This will help you find the best options for your addition.

At Stonehill, we specialize in direct hospitality lending. We have a proven track record for delivering the best financing solutions for our customers. Stonehill offers hotel construction financing, permanent loans, bridge loans, and a variety of other loan programs to help your business. Our dedicated professionals can help you find the ideal choice for your projects or acquisitions. Call us today at (713) 666-2544 to schedule a consultation. We look forward to the opportunity to work with you. 

Revenue Increasing Renovations: How Hotel Loans Can Help

Adding certain features to your hotel can help you increase revenue and stay competitive in the hospitality market. Hotel loans are a great way to fund these renovations and updates to boost your business and fill more rooms. Make sure your renovations will attract customers at the price point you want. There are a few upgrades to consider when deciding where your renovation priorities are.

Revenue Increasing Features

It can be difficult to stand out in the hospitality industry. However, adding or updating the following amenities can help you win out over the competition:

  • Inviting entrances
  • Luxurious in-room bathrooms
  • Ample power outlets
  • Recreation facilities
  • Dining areas
  • Wellness spas

Since these additions to your hotel can appeal to many different people, you can include many different types of guests, like business travelers, vacationers, and honeymooners. The investment could pay off in huge ways for your company. These features and renovations can help increase your revenue and bring in more guests. Therefore, you want the right hotel financing to make these things a reality for your hotel.

Using Hotel Loans To Make These a Reality

With the help of hotel loans, you can add the features that your guests want. Depending on which amenities you are going to add, there are a number of hotel financing options. One of the first steps is to decide how much capital you will need to create these spaces and conveniences. Make a list of what needs to be renovated and speak to your preferred contractor about estimates for these changes. Then, think about what your budget will be. Finally, discuss your needs and budget with your preferred hotel lending company to see which hotel loans are best for you.

At Stonehill Strategic Capital, we offer practical hotel financing solutions. We can help you with bridge loans, permanent loans, mezzanine financing, preferred equity lending, hotel construction financing, or PACE lending to suit your needs. Our team will discuss your requirements and options to find the most appropriate hotel loan for you. Give us a call today at (713) 666-2544 to schedule a consultation. We look forward to the opportunity to serve you.

The 5-Star Promise: Implementing Safety Devices in Hotels

Hotel Construction FinancingOn September 6, 2018, the American Hotel & Lodging Association (AHLA) announced its 5-Star Promise initiative. Finding the right hotel construction financing options will help you upgrade security measures as a part of this program. Also, it can create the best outcomes for your hospitality company and the safest environment for your guests and your staff members.

What Is the 5-Star Promise?

The AHLA announced the 5-Star Promise initiative as part of its ongoing efforts to promote the safest possible settings for employees in the hospitality industry. Some of the most important elements of this voluntary program include:

  • Establishing policies banning sexual harassment and posting those policies in multiple languages for employees
  • Training and educating employees about sexual harassment
  • AHLA training programs for safety, security and diversity in the workplace
  • Partnerships between AHLA and the National Alliance to End Sexual Violence, Polaris, End Child Prostitution and Trafficking and other agencies and organizations to focus on workplace safety and the end of sexual violence and child abuse

The AHLA also recommends that employees are given safety devices as part of participation in the 5-Star Promise initiative. Surely you want to promote safety for your employees. However, depending on the how big your staff s and the types of security devices needed, hotel financing solutions may be necessary to create a safe environment in line with AHLA’s suggestions.

Participation on the Rise

Since it was announced, participation in the 5-Star Promise program has increased by 230%. Currently, about 20,000 properties have committed to the principles of the 5-Star Promise. They are putting the safety and well-being of their employees at the top of their priorities. The right hotel loans can provide financial support for these and other activities in the hospitality industry.

Finding the Right Hotel Construction Financing Solutions

Renovating, upgrading, and adjusting safety in your properties is an ongoing process. These projects mean you want the most practical hotel construction financing options available. Working with a company that specializes in hotel financing is the best way to manage expenses of this nature. Your hotel lending company will provide you with the right solutions for short-term and long-term lending arrangements in the hospitality industry.

If your company needs the best and most practical options for hotel funding, Stonehill is the best and most practical solution for your needs. We are direct lenders with a commitment to quality and customized arrangements for our customers. Call us today at 713-666-2544. Our team will be happy to work with you to create the most practical financing solutions for your needs.

Hotel Financing Latest News: Guests Want Mobile Innovation and Are Willing to Pay

Making sure that your hotel appeals to your target audience is critical to your ongoing success in the hospitality industry. The right hotel financing options can help you to update and upgrade your amenities to align with the preferences of your guests. Mobile innovation is one of the most important areas in which improvements may be overlooked by hotel owners and managers. Using hotel loans and financing to upgrade technologies for booking, messaging and requesting special services will often pay off in increased guest loyalty and recommendations for your facilities and customer service. 

The Most Wanted List for Hotel Guests

According to recent studies and surveys, most hotel guests would prefer to use their mobile device to conduct a wide range of activities in the hospitality marketplace:

  • Oracle Research found that 88 percent of the guests they surveyed would be interested in a mobile app that would allow them to personalize their hotel experience.
  • SmithMicro’s research indicated that 83 percent of respondents wanted promotions for hotel services and amenities to be sent directly to their mobile device.
  • A YouGov poll found that 58 percent of those responding to the survey wanted to be able to book hotel restaurant reservations by using their mobile devices.
  • More than half of all those responding to the Hospitality Technology magazine’s 2018 Customer Engagement Technology Study indicated that they would like the ability to pay using a mobile device. Only 28 percent of hotels, however, said they had that capability.

While about 80 percent of hotels allow the use of mobile devices and smartphones to book room reservations, only 30 percent are equipped to allow changes and management of reservations through the same smartphone or device.

Adding the Amenities That Matter to Guests

The right hotel financing options will make it much easier for your hotel to upgrade its mobile and technological services to accommodate the wishes of your guests. Implementing mobile pay options, for instance, is usually a relatively low-cost process that will pay off in improved customer satisfaction. Changing workflows and adding systems that allow for mobile bookings at your hotel restaurant or alterations of existing reservations will usually pay off in an improved reputation for customer service that can increase your profitability in the competitive marketplace.

At Stonehill Strategic Capital, we offer the most advanced and practical options for hotel construction financing, bridge loans, permanent loans, mezzanine financing, preferred equity lending arrangements and PACE lending options. We work with our clients to provide the most appropriate hotel financing options for a wide array of renovation and acquisition requirements. Call our team today at 713-666-2544 to schedule a consultation. We look forward to the opportunity to serve you now and in the future.


Staying Competitive With Airbnb in the Modern Hospitality Industry

Hotel LoansFinding the right hotel loans is essential to maintain growth and to stay competitive in the hospitality industry. Airbnb is a serious threat to many hotels in urban areas or resort destinations. Developing strategies that differentiate your hotel in a positive way from these hit-or-miss accommodations will provide you with added visibility and increased interest in your properties. There are a few ways to set yourself apart from Airbnb accommodations in your area.

Focus on Your Amenities

Your hotel offers many practical amenities that Airbnb properties cannot. From swimming pools to business centers and high-speed Wi-Fi, your establishment caters to every part of the travel experience. Hotel construction financing is a great way to fund new amenities and additions to your lineup of services. By offering guests the best experience, your hotel will improve its reputation and will set itself apart from bare-bones Airbnb arrangements with little amenities.

Make Booking Easier

Upgrading your booking processes with new equipment and increased staffing is a great use of hotel financing resources. Especially for hotels that are not part of a chain, making sure the booking process is easy and transparent will ensure that guests can make arrangements for a stay online or on the telephone. This strategy will help your hotel to stay competitive in the modern hospitality industry.

Target Your Primary Audience

Understanding the differences between your hotel’s target customers and those who prefer Airbnb accommodations will allow you to position yourself correctly in the industry. Hotel construction financing arrangements are designed to help you modernize your current hotel properties and acquire new ones that will appeal to your specific niche. A luxury hotel and resort, for example, is not in direct competition with Airbnb and its bargain-hunting customers. If you offer affordable accommodations, you may want to target your potential customers with ads that focus on the services you offer and that Airbnb accommodations do not.

Build on Your Successes

Taking a hard look at your guest data to determine the primary reasons your customers choose your hotel will allow you to focus your financial efforts where they will do the most good. For example, if your facility primarily caters to business travelers, upgrading your connectivity and equipment with the help of customized hotel loans could promote your appeal among this niche of the hospitality marketplace.

At Stonehill, we offer hotel loans designed with your needs and your hotel in mind. We go the extra mile to ensure that your financial arrangements suit your needs perfectly. Call us today at 713-666-2544 to schedule a consultation. We are here to serve you.