Refinance a Hotel Loan in 2024
Updated: Dec 17, 2023
Your Partner to Refinance Your Hotel Loans
Navigating the complex landscape of hotel and motel financing demands expertise. With over 30 years of specialization in this sector, GHC Funding stands as the premier firm adept at funding, refinancing, or restructuring your hotel projects or portfolio. Our strong connections with lenders, the SBA, and a vast network of industry contacts ensure successful outcomes for your endeavors.
From your initial contact until the closing day, we ensure a seamless process and unwavering dedication to facilitating a smooth transaction.
We meticulously collect documents and diligently work to optimize your property or properties for the best possible results.
Should credit issues arise, we provide guidance on improving credit scores. In cases of cash flow challenges, we meticulously analyze your financial records and offer consultation to address these issues effectively.
Whether you own a small independent motel, a medium-sized flagged property, or a luxury hotel, GHC Funding possesses the expertise and commitment to provide successful guidance. With our extensive experience, you're in capable hands whether building, purchasing, or refinancing your property.
Hotel financing encompasses various aspects, including construction, acquisition, renovation, or refinancing. The primary types of hotel loans encompass SBA 7(a) loans, SBA 504 loans, USDA B&I loans, and conventional bank loans. Typically, rates for hotel/motel financing range between 5% to 9%, offering repayment terms of up to 25 years.
Here are some common uses for hotel financing:
Buying an existing hotel:
Acquiring established businesses often involves significant real estate costs.
Building a new hotel:
New construction requires substantial financing.
Renovating an existing hotel: Costly repairs or modifications may exceed the operating budget.
Purchasing furniture, fixtures, and equipment: Replacement costs necessitate financial support.
Covering working capital needs:
Boosting working capital assists in covering ongoing expenses.
Types of Hotel Loans at GHC Funding
We predominantly secure the following types of loans for hotel/motel clients:
Conventional Bank Loan Overview:
Loan size: No limit
Interest rates: 5% to 7%
Repayment term: Up to 25 years
SBA 7(a) Loan Highlights:
Loan size: Up to $5 million
SBA interest rates: 7.25% to 9.75%
Repayment term: Up to 25 years
SBA 504 Loan Overview:
Loan size: Up to $14 million
Interest rates: 4.5% to 6% on CDC loan and 5% to 12% on bank loan
Repayment term: Up to 20 years
USDA Loan Highlights:
Hotel Financing for Acquisitions:
Acquiring an existing hotel involves significant capital.
SBA loans and private lenders often finance such acquisitions.
Starting from scratch requires considerable initial investment.
Construction down payments and initial operating expenses must be factored in.
Successful financing depends on the business's performance post-opening.
Renovation projects aim to enhance the hotel's lifespan and value.
Major renovations often require additional financing.
PIP obligations and reserves may aid in funding renovation costs.
Refinancing existing loans leads to lower rates and additional capital.
Operational history and market outlook are crucial factors for approval.
Efficient application processes ensure swift funding within 45 to 60 days.
Furniture, Fixtures & Equipment Financing:
Replacing furniture, fixtures, and equipment is a significant expense.
Equipment loans and business lines of credit facilitate these replacements.
SBA loans can cover significant furniture, fixture, and equipment needs.
Buying franchise hotels often eases loan approvals due to established branding.
SBA loans and conventional bank loans cater to franchise hotel financing.
Proper documentation aids in the loan application process for franchisees.
At GHC Funding, we provide tailored solutions for your hotel financing needs. Contact us to explore the most suitable loan options for your hotel project.