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Key Hotel Financing Trends for 2018 and 2019

Hotel LoansFinding the right hotel loans help you make the most profitable investments in the hospitality industry. By monitoring current trends in the financial marketplace, you gain the understanding of right funding options for your upcoming acquisitions, renovations or expansions. There were many trends in the hotel lending marketplace for 2018 and 2019.

Increased Fluidity in the Hotel Financing Marketplace

While values and sales have remained strong throughout 2018, the hotel financing market has been booming for investors and hotel owners. Private equity arrangements are gaining in popularity for acquiring and financing larger chain hotels and franchises. For smaller hotels, alternative lending options are developing into the traditional financing marketplace.

A Slowdown in New Construction

Demand for hotel accommodations and new properties in many areas are strong. However, most experts believe that hotel construction financing will continue to see a downturn in 2019. At least part of the recent slowdown in new construction is associated with tariffs on building materials coming from overseas. This has led to slower growth in the hotel construction field and reduced the need for funding.

Increased Renovation and Refinancing

In 2018, lenders saw a marked increase in the refinance market. This trend is expected to continue through 2019, as hotel owners and investors hang on to properties rather than attempting to sell them. Rising interest rates also make accessing equity in existing properties more appealing than acquire financing for new hotel acquisitions. Finding the right hotel loans and solutions allow for flexibility in managing upgrades to existing hotel properties.

Shopping for the Right Lenders

For most real estate investors, the right lending has a significant impact on the profitability of their hospitality investments. For 2019, these investors are likely to be particular about the lenders they work with for their financing needs. Working with a leading company in hotel lending helps investors to obtain the right arrangements for their funding requirements.

As an established leader in the hotel lending marketplace, Stonehill provides a wide range of financial options for investors in need of solutions. We offer a variety of loans designed to suit the needs of our clients perfectly. Call us today at 713-666-2544 to discuss your hotel loans and financing requirements and to schedule a consultation with us. We look forward to the opportunity to serve you.

Stonehill Projects Record Year in Transaction Activity

Stonehill hit a record high in the first quarter, closing approximately $190 million in hotel financing. That follows a strong 2015, in which the Atlanta-based direct lender executed on 23 transactions. With a substantial number of projects already in the pipeline, the company is actively funding acquisitions and recapitalizations for both stabilized and transitional assets with strong flags in secondary and tertiary markets.

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Stonehill Strategic Capital Ramps up Lending Program for 2014

ATLANTA – (BUSINESS WIRE) – Stonehill an affiliate of Peachtree Hotel Group focused on hotel financing, today announced that it has ramped up its lending platform and plans to deploy approximately $200 million, primarily in mezzanine and bridge loans for hotel assets and development over the next 12 months. The company targets the $1 million to $10 million loan range for mezzanine loans and $3 million to $20 million for bridge financing.

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