Hotel Financing From The Ground Up
Opening a new hotel offer incredible revenue potential with – after all is said and done – relatively little maintenance. However, when starting a project of such a large scope from square one, there is a lot to consider in the way of logistics and hotel financing.
Hotel financing for new resorts starts at the basics, and that means property acquisitions. Depending on the size and length of the project, there are a number of solutions available. Conventional commercial real estate loans can provide funding to cover the cost of land acquisitions for hotels of almost any size. Additionally Commercial Mortgage Backed Securities (CMBS) Conduit loans are great solutions for flagged hotel projects.
Hotel Financing For Construction
For larger resort hotel projects, where construction and installation are coordinated efforts throughout multiple stages, there are special loans designed to cover the nigh costs. These loans can often provide interest-only payments during the construction phase, with the remainder rolled into the commercial mortgage payment after completion.
Bridge loans are designed to cover immediate financial obligations while larger hotel financing is still in the pipeline. This gives entrepreneurs the funding needed to cover expenses such as closing costs, acquiring licenses and permits, and any other immediate expenditures.
Every hotel uses equipment – from computers to kitchen appliances, and everything in between. Rather than incurring another large expense by purchasing equipment, leasing equipment provides the equipment hotels need, while spreading out the cost over monthly payments. Additionally, equipment financing has many options, such as the ability to upgrade equipment and maintenance, which can be rolled into the leasing agreement. Perhaps the biggest advantage to hotels is that by leasing equipment, all payments up to $500,000 can be deducted when filing taxes, which offers huge annual savings.
Get Your Project Underway
Taking on a large project like building a hotel can go much faster and more smoothly with the right financing partner. At Vantage Commercial Capital, we provide hotel financing for every step along the way. From purchasing property to breaking ground, construction, and equipment installation – our team will work with you to provide financing to cover expenses at every stage of development. We work with franchise hotel owners, commercial real estate investors, and property developers to devise the best financial strategies to see large hotel projects to completion, and ensure continued success. Call us today at 913-543-4242 and put us to work for you.