While the availability of hotel construction lending has dwindled slightly from a few years ago, there is still solid demand for these loans. In addition, lenders are often more willing to extend a loan if the project has a multi-unit or multi-brand operator sponsor. Other types include commercial mortgage bridge loans, project bonds, and HALL Structured Finance.
A 504 loan can be used to construct a hotel, renovation, or other business. The loan can be used for the first mortgage or a second mortgage. The first mortgage can be fixed for five years, and the second mortgage can be set for 25 years. Some hotel lenders even offer a 30-year amortization period on the first mortgage. This loan can also finance furnishings, fixtures, and equipment, or FF&E. With a 504 loan, a hotel owner can pay as little as 15% to finance a hotel expansion or renovation project.
The SBA 504 green loan program allows hoteliers to access more credit for their new construction or renovation projects. This program enables hotel owners to obtain up to $5 million in financing for the same project. Applicants must qualify for net tangible assets of at least $15 million and a net income of $5 million.
A commercial mortgage bridge loan can help you pay construction costs when building a hotel. This is a good choice if you have little time to pay off debts before the property opens. Typically, these loans range from $7 million to $35 million. Compared to traditional financing, this option has lower interest rates than conventional financing and can be fast-tracked without the SBA loan.
These loans can be tailored to meet your hotel construction needs and are available in various sizes. Whether you need to renovate the interior of a hotel, update the plumbing, or develop untouched land, you can get a commercial mortgage bridge loan for hotel construction.
Hotel construction project bonds offer a new way for investors to participate in hotel construction projects. They allow investors to buy listed assets with better returns than traditional loan products. However, they may not be appropriate for low-risk investors.
The bonds are being issued to support the Grand Hyatt hotel in Downtown Memphis. The Downtown Memphis Commission board approved the bond issuance Tuesday. The Center City Revenue Finance Corporation will have to agree on it before the final bond issuance. The final decision on the assignment is expected to be made within the next week.
Spirides Hospitality Finance Company is a lender that provides mortgages and loans for hotel owners, developers, and construction projects. Spirides can provide loans of up to $2,000,000 for hotels under construction, acquisitions, or renovations. Spirides has been in business since 1920 and is family-owned. The company is headed by Harry G. Spirides, who has more than 30 years of experience in the hotel industry.
Spirides Hospitality Finance Company is based in Tampa, Florida. Their lending services are geared toward hotel owners, developers, and investors. They can provide financing for construction, acquisitions, renovations, and more.