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COMMERCIAL REAL ESTATE FINANCING SHOPPING CENTERS HOTELS APARTMENTS OFFICE & INDUSTRIAL FCF BLOG ABOUT US

BUYING A HOTEL
GET THE BEST LOAN
FIXED RATE TEN YEAR TERM
NON-RECOURSE
(480) 970-0990


HOTEL ACQUISITION

Buying a hotel is different from buying other commercial real estate. A hotel is a lodging business operated in a special purpose building. There are no leases and tenants. Most hotels have a franchise to use a national brand name.

Financing the purchase of a hotel is different from other commercial properties. A hotel is an operating business. The lending and the underwriting standards are different.

When a franchised hotel has a change of ownership there will usually be a PIP (property improvement program) required by the franchisor. A PIP can often cost $10,000 per room. A 100 room hotel could easily require a $1,000,000 PIP. Talk to us while you are negotiating a purchase. We can advise on many of the intricacies.

CMBS LOANS

We frequently use a CMBS (Collateralized Mortgage Backed Security) loan for an operating franchised hotel purchase. These are fixed rate, ten-year term loans, often 30 year amortization, non-recourse loans at a very competitive market rate. These usually start at $5,000,000 and go up in size from there. They can be 70% of cost.

SBA LOANS

We sometimes use SBA 504 loans for acquisitions. These are slightly higher in rate and more complex than a CMBS loan. However we can sometimes qualify a property that can not get a CMBS Loan. See our page on SBA Hotel Financing.

BRIDGE LOANS

In situations where a property is going to be re-positioned, have a franchise change or needs substantial renovations a Bridge loan is usually the best way to proceed. These loans are higher in rate and shorter in maturity but they often have the flexibility needed.

CONVENTIONAL BANK LOANS

These loans fill a need. They are usually only a five-year term and higher in rate than CMBS. They can have flexibility when needed.

OUR ADVICE

When you are negotiating the purchase of a hotel property please contact us before you sign a contract.

SEE OUR OTHER HOTEL PAGES:
HOTEL REFINANCING LOANS
HOTEL CONSTRUCTION LOANS
SBA HOTEL LOANS

THE BEST LOAN FOR YOU

Hotel financing is our specialty. We arrange loans for all kinds of hotels in all parts of the country. Large and small, franchised and independent. We have years of experience and can handle any need that our client may have.

We are independent and we do not have a requirement to fit you into any particular kind of loan as most others do. We always represent the owner / borrower. We strive to get our client the best loan that fits their needs.

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MINIMUM LOAN SIZE IS $1 MILLION

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8204 East Del Caverna Drive, Scottsdale, AZ. 85258
info@fcfcorporation.com
AZ CMB-0922527
NMLS ID 181100
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