There’s no denying that the hotel industry brings in tons of cash.
For many business owners and investors, entering this lucrative industry may seem intimidating or out of reach.
Fortunately, there are many hotel and hospitality loan options, especially here at Marquee Funding Group, for those interested in entering the industry.
Hotel and hospitality loans can cover everything from construction and renovation to expenses and employee salaries.
Let’s dig into how to get a hotel loan, what it takes to qualify for one, and how to find the right lender to partner with on this new venture.
How can I get a hotel loan?
Hotel and hospitality loans are large commercial loans for specific property types and purposes.
These property types might include:
- Hotels and motels
- Bed and breakfasts
- RV parks
- Resorts
The purposes might include:
- Hotel purchase or refinance
- New construction
- Renovation or remodeling
- Large projects or expenses
- Bridge loan until permanent financing is acquired
The uses for a hotel loan are extensive and depend largely on the specifics of your unique project and purposes.
Common hotel funding options include hard money loans, bank loans, Small Business Administration (SBA) hotel loans, and more.
Where you decide to get your loan depends on what you need, and what you are able to qualify for.
What’s your loan scenario?
With a bank, for example, it can be difficult to qualify for such a large, complicated loan unless you are able to provide extensive documentation on your personal and business finances, have a great credit score, and meet specific debt and cash flow requirements.
On the other hand, a hard money lender, like Marquee Funding Group, makes qualifying for a hotel loan much simpler.
What does it take to qualify for hotel and hospitality loans?
When entering the hospitality industry, it’s important to have a reliable lending partner, like Marquee Funding Group, to help you quickly fund your current and future deals.
The best lenders are intentional about entering deals with those who they can build a real relationship with.
Qualifications for hotel and hospitality loans will vary depending on the lender, but you can expect much more flexibility with a hard money lender.
What is a hard money lender?
Hard money lenders are private individuals or funding groups rather than banks.
These lenders loan money on a case-by-case basis, which largely depends on the assets of the individual and the property as collateral.
As a result, these loans are not tied to the same strict requirements as banks or other associations.
Hard money lenders may use a combination of bank statements, asset statements, tax returns, or other flexible methods to determine whether the deal makes sense.
Private money lenders like Marquee Funding Group will leverage their years of expertise in the industry to hear your hotel plans and exit strategy to quickly determine if a deal can be made
What are the loan limits for hotel financing?
You’ll find that many hospitality loan options, whether it be a term loan, SBA loan, or other bank loans, will have funding limits of around $5 million. Lines of credit may cap at around $500,000.
Marquee Funding Group offers hard money loan amounts up to $20 million, with a loan-to-value (LTV) of up to 70%, deal-specific.
Marquee can structure even the most unique, complicated lending scenarios. That’s not to say a hotel loan is overly complicated, but many lenders are limited in their hotel and hospitality loan options because of strict requirements.
When choosing a lender to supply your hospitality loans, it’s important to ask about and understand the extent of their experience with these types of loans.
If you choose a lender who has never structured this type of loan or has very little experience, it can make the process much longer and more complicated than it needs to be.
Marquee Funding Group is able to offer a wide range of hotel loan options, and we have specific experience in this industry that we are able to share with you.
Who is the top hotel financing lender?
Marquee Funding Group is the ethical standard for hard money lending.
We are an experienced team of savvy real estate investors and loan originators, and we use our years of experience to make the types of fast decisions you need to get your deals done.
We offer:
- Immediate review of your loan scenario
- Quick loan application, document request, and underwriting
- Funding in as little as 7 days
The best loan for your hospitality business depends on what you need the financing for. Reach out to our team to discuss your loan scenario, and we can help you structure the type of loan you need to achieve your goals.
If you need a bridge loan to access cash fast while you wait for permanent financing, we can do that. If you need a new construction loan to build a bed and breakfast, we can help.
We also can help you access the cash tied up in your existing hotel with a cash-out refinance, provide a loan for renovating or remodeling your hotel or even structure a mixed-use loan.
No matter what your goals are, talk it out with our accomplished team here at Marquee Funding Group and we can help you determine your next steps.
We understand the unique challenges of the business owners and investors who choose to work with us, including the difficulties you may have experienced when starting your own hotel and not having a reputable hotel brand built behind you yet.
Marquee offers:
- Commercial, industrial, construction, and land loans
- Ground-up, fix-and-flip, value-add, or fix-and-occupy loans
- Rate-and-term refinance or cash-out refinance
- Single-family and multi-family loans
- Fix-and-flip or fix-and-occupy loans
- Non-owner-occupied and owner-occupied consumer or business purpose loans
If you’re ready to get started, submit your loan scenario to Marquee today. We look forward to helping you reach all your hotel and hospitality business goals.
Photo by RODNAE Productions