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Managing Hotel Construction Costs

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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

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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.

Hotel Financing Latest News: Renovated Philadelphia Marriott Old City

Hotel FinancingThe recent opening of the newly renovated and reimagined Philadelphia Marriott Old City highlights the importance of the right hotel financing solutions for hospitality companies throughout the United States. This property now boasts 364 rooms and 17,000 square feet of meeting space, which sets it apart in the Philadelphia hospitality marketplace. Here are some of the most exclusive features of the newly rebranded Philadelphia Marriott Old City hotel.

Exclusive Spaces

Along with the increased amount of meeting room space created during the renovation, the Philadelphia Marriott Old City also incorporates a Great Room for entertaining, the elegant M Club Lounge and 17 dedicated event rooms. These spaces are ideally suited for meetings of all sizes and are available for weddings and other gala events. According to the interior design team who worked on the Old City project, the patterns and textures featured inside the building were inspired by the warehouses that surround the area and the artisanal qualities of the designs created by manufacturers and craftsmen in this part of Philadelphia.

A Change in Direction

The property now known as the Philadelphia Marriott Old City was previously operated under the Sheraton Society Hill label. The change in name and appearance is designed to expand the options available to guests and to transform the interior spaces of this exclusive hotel into a more practical solution for the needs of modern businesses and travelers. By upgrading the business center and expanding the meeting spaces available for guests and corporate clients, the Philadelphia Marriott Old City will be able to achieve greater visibility while setting itself apart from other lodging options in the City of Brotherly Love.

The Importance of Hotel Loans

Hotel financing is critical to projects like the one just completed for the Philadelphia Marriott Old Town and many other hotels across the U.S. Finding the right solutions for funding is essential to promote the highest profitability and the best outcomes for these construction projects. By working with a firm that specializes in funding for the hospitality industry, companies will typically secure the hotel loans they need on terms they can afford.

Stonehill offers hotel construction financing and other hotel financing options designed to help companies in the hospitality industry to achieve greater profitability and to provide great service to guests. Our team will work with you to determine the most practical and cost-effective solutions for your current and future financing needs. Give us a call today at 713-666-2544 to discuss your requirements with our expert consultants. At Stonehill, we are here to deliver the most innovative and effective solutions for all your hospitality finance needs.

First Bay-Area Modular Hotel Open for Business

Hotel LoansModular construction strategies are becoming more popular throughout the industry. The recent opening of the Bay Area’s first modular hotel project, Home2 Suites by Hilton, demonstrates this trend. Acquiring the right hotel loans will provide the necessary funding to explore modular building methods and to promote the highest return on investment. Here are some of the highlights of the Home2 Suites project and the modular building processes used in its construction.

The Specifics of the Hilton Modular Hotel

The Home2 Suites project not only represents a first for the Bay Area but also a first for Hilton in modular hotel construction. The property encompasses 57,000 square feet and includes 155 suites complete with kitchen, a game room, shared spaces and a combined laundry and fitness areas. Hilton also included solar panels capable of producing almost half of the necessary energy to power these spaces. A bio-retention pond located on the property will filter run-off, which will help to reduce the carbon footprint of this innovative hospitality development. Free internet access and pet-friendly policies round out the exceptional amenities included in the Home2 Suites guest experience.

Benefits of Modular Construction

Modular building methods will typically speed up the construction process, reducing the cost of labor and providing the best return on investment for your project. It may even provide added support in acquiring the right hotel construction financing for your needs. Because the components of the building are created offsite under controlled conditions, weather is no longer a major factor in the ability to produce these components. This allows higher standards of quality for the components by allowing testing before they are put to use in building the hotel.

Determining the Right Approach to Financing

Because modular construction is relatively new to the hospitality industry, companies may find it difficult to obtain the right hotel loans for these types of projects. An experienced hotel loan and financing company can help you obtain quick approval for desirable financing for modular hotel projects.

At Stonehill, we specialize in the hotel loans you need to achieve your goals in the hospitality industry. Our hotel financing team will work with you to ensure the best solutions for your needs and your upcoming projects. Give us a call today at 713-666-2544 to discuss your funding requirements with our team. We look forward to the chance to serve you.

Taco Bell Boutique Hotel Opening for a Limited Time This Summer

Hotel FinancingTaco Bell recently announced the newest addition to its lineup. Rather than a new restaurant location or menu item, this upcoming arrival is a theme hotel that offers accommodations designed for the most committed Taco Bell fans. The hotel has been dubbed “The Bell” and is expected to open on August 9, 2019 for a limited time. This pop-up hotel concept highlights the need for innovative short-term and long-term hotel financing options for hospitality companies.

Taco Bell With All the Trimmings

The Bell will feature many of the most popular menu items currently found on the Taco Bell menu, including Baja Blast frozen drinks, tacos and sauces. New menu items will also be introduced as an exclusive feature of The Bell. According to those in the know, the Taco Bell theme will be carried through the entire establishment. Pool floats will be emblazoned with Taco Bell branding. Guests will even be able to visit an on-site gift shop and salon that will offer theme-inspired hairstyles and nail art.

Reservations Available Starting in June

The Bell will begin accepting reservations sometime in June 2019. Prices and available dates have not yet been released for the new hotel. The Bell, however, is not Taco Bell’s first venture into the hospitality industry. In 2016, the food-service company entered into a partnership with Airbnb to host four fans in a Steakcation event in Ontario, Canada. This event was designed to draw attention to the release of the Steak Doubledilla, a new menu item released during that year.

The Right Solutions for Hotel Financing

The projected success of the Taco Bell pop-up hotel is a good example of the opportunities made possible with the right hotel lending arrangements. It is likely that Taco Bell and the Yum! Brands conglomerate can afford the cost of this temporary hotel out-of-pocket. However, other businesses in the hospitality industry benefit from short and long-term hotel loans that can allow for timely renovations and acquisitions.

At Stonehill Strategic Capital, we work with hotels and other companies in the hospitality industry to provide the hotel financing needed to maintain profitability. We are direct lenders and can provide permanent, preferred equity, bridge and mezzanine hotel financing. Give us a call today at 713-666-2544 to discuss your financing requirements with our team. We look forward to the opportunity to serve you.