LA Hotel Loans
City Capital Realty
2355 Westwood Blvd Suite 258 Los Angeles
Hotel and Motel SBA Loan For Franchise Hotel Operator
Flagged or unflagged (independent ) . Although the flagged motels are usually easier to finance, however, there is financing for unflagged motels as well.
SBA loans up to $5,000,000
|Loan Amount: $5,000,000 max
Down Payment: 25%
Term: 25 years
Rate: Prime rate plus margin
Some restrictions may apply
Rates and fees are subject to change
Appraisal and Phase I report require
Three year financial
A &flagged& hotel means that it is a major hospitality brand such as Best Western, Hilton, Super 8 Motel, Comfort Inn, Days Inn, Holliday Inn , Ramada Inn, Quality Inn, Marriott, Radisson, We represent many lending sources including funding hotel loans for our own portfolio. You can have confidence that we at City Capital Realty will work with your best interests in mind.
Obtaining a hotel loan requires a profitable operating and occupancy history of the subject property. Getting a hotel loan for a new hotel is possible provided it has a well known flag, is well located, and has strong management and sponsorship. The best rates and terms available for hotel loans that are well cared for attractive, and have pleasing amenities. City Capital Realty would be glad to discuss all of the factors you want to be aware of in your planning for purchasing or refinancing hotel loan.
Hotel Loans and Hotel Financing are a Reflection of all the IndividuL Departments True Profitability
The financing of hotels all comes down to the consolidated operating statement of all the various departments of the hotel.
Each individual department will demonstrate their profitability by taking all revenue for that department, applying all allowable expenses; including cost of goods or services sold, yielding true net operating income for that department.
The property should be easily accessible and visible from the highway or major roadway .
Business-oriented hotels will provide ready access to downtown business areas, corporate parks and airports.
Vacation-oriented hotels will be highly visible from major roadways and be in close proximity to recreational amenities.
Property Condition and Characteristics
The hotel should exhibit sufficient parking capacity to adequately accommodate its range of services and location.
A stable historical operation is critical. A property with a history four or less years should be reviewed carefully before buying a hotel.
The hotel should have established an ongoing refurbishment program for both hard and soft goods.
Franchise affiliated hotels or Flagged hotels as they are known by are preferable, with franchise agreements extending beyond the term of the proposed loan.
Minimum acceptable occupancy (annualized for properties with seasonal fluctuations) is typically 60%; the average occupancy over the last 3 years should be at least 60%.
There are several loan and funding programs that have been used to finance hotels and motels, which can be structured with various interest rates and term options. Rates will be determined by the overall credit quality of the property and business, as well as the financial strength of the operator. Interest rates can be structured as variable, fixed or fixed to float. In the event that construction finance is requested lenders can structure an interest-only loan during the hotel construction period. The term and amortization is often structured anywhere between five and twenty-five years, depending on the assets being financed with the loan. Financing for hard assets such as the hotel property's real estate generally receive terms between fifteen and twenty-five years, while a loan for working capital and inventory could have a term of five to ten years.
Shawn Rabban (310) 714-5616