| What is Considered a Hotel?
Hotel properties are usually classified as either "flagged" or "unflagged" hospitality. Flagged hospitality properties carry national franchises whereas unflagged hospitality properties do not have national franchise affiliations and are usually smaller and privately owned and operated.
What To Expect When Seeking Hotel Financing
Hotels are popular property investments yet the approach taken by most lenders can make getting reasonable financing very challenging.
Traditional lenders:
- Focus on vacancy rates and operating history.
- Limit financing to maximum of 75% thus tying up more of the owner's valuable cash.
- Don't like to finance investors who live in another city or state.
- Require tedious ongoing financial reporting.
- Focus on short-term (5 to 10 year) notes with difficult balloon payments. Short terms also force frequent refinancing with the associated costs and risk of payment increases.
- Don't allow un-restricted cash-out loans.
What Makes Harborview Financial Partners' Approach So Popular?
A specialized focus on the needs of investors and small business owners along with flexible funding options makes affordable hotel financing much easier and faster to obtain.
- Global Income Approach. Vacancies and cash flow don't tell the whole story. By including the investor's income from all sources, not just the property, Harborview Financial Partners can make financing hotels much smoother.
- High financing levels. Programs with up to 80% financing for owner-occupied properties and for investors helps owners put their cash to more productive use.
- Investor-friendly. Harborview Financial Partners' programs do not require owner occupancy for hotels.
- No ongoing reporting requirements. Spend your time running your business.
- Up to 30-year fixed rates and terms. With loan terms ranging from 15 to 30 years for hotel financing, Harborview Financial Partners has programs that allow you to better manage your business cash flow. Longer loan terms allow you to lower your monthly payment and control the speed at which you build equity.
- Unlimited cash-out refinancing allowed for hotels. Use your cash to perform property improvements, invest in additional real estate, or to enhance your business where you need it most.
Your Next Steps for Financing A Hotel Property
Get pre-approved and speak to a Commercial Loan Specialist today. Pre-approval is free and has no obligations. It's the fastest and easiest way to learn the best options for you, and the first step to receiving the cash you need.
Call 1.813.600.5488
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