Hotel Loans
Contact Us
When it comes to building or upgrading your hotel, you need a huge loan. And hotel loans can be cumbersome to get if you are planning to build a high-end non-branded hotel. However, with the help of a reliable commercial loan consultant like us, you can get it done within no time. At Commercial Real Estate Loan Pros of Orlando, we can help you obtain these loans in quite a simplified and regulated manner. Read this article to gain some insights about such loans.
What are hotel loans?
These loans are a combination of real estate and business loans that are joined into a single hospitality financing facility. For these loans, pledged collateral is used in the form of physical real estate, that is, the hotel building.
It is required that the loan must receive some approval as it is required in a normal commercial real estate loan. It is also essential to prove the validity of the hospitality business as a viable and functional financial proposition.
There are several purposes for which you can use the hotel financing: –
- Building a new hotel
- Acquiring a fully constructed hotel
- Renovating a hotel building
- Refinancing a current hotel loan
What are the requirements that you need to fulfill for availing of a hotel loan?
There are some metrics that lenders utilize to decide whether they want to approve or disapprove the loan application. There are many ways in which the merits can be assessed.
Some of the metrics are:
- Revenue per available room (RevPAR index): It is the product of the hotel’s daily average room rate into the occupancy rate. A hotel is considered stabilized if the REVPAR index is reaching approximately 90%.
- Net operating income (NOI): It includes the income of the hotel minus the operational expense. When it is divided by the operating expense, it provides us the NOI expense ratio.
- Cap rate: This amount is the unleveraged value which is equal to the net operating income (NOI) divided by the average of comparable properties.
- Debt yield: It is also known as hotel loan rate of return. NOI is divided by the loan amount to calculate the value.
- Loan assumption option: It is an option in which the borrower can sell the hotel even if a certain amount of debt encumbers it, and the new buyer assumes the debt at the time of sale.
Why choose us for commercial loan consultancy services?
At Commercial Real Estate Loan Pros of Orlando, we use our years of experience and understanding to provide our customers with the best deals. With the skilled and accurate knowledge of our policies, procedures, and capital markets we try to save time for our clients and ensure that the funding is received in the desired manner.
We have in-depth local knowledge. It helps us find and shortlist lenders who are appropriate for your project. Also, we make sure to keep the documentation and interest rates as low as we can. So, contact us anytime for a huge variety of consultancy services for various loans.
There are so many areas or regions where we offer these services with most of them being cities.
However, if you need any of these services, you need to contact us. The list below comprises the areas where we offer these services.