Obtaining financing for your project is probably the most critical step in ground up construction or acquisition of an existing asset. Since mortgage debt typically represents the largest source of cash invested in a transaction, finding a mortgage lender is make-or-break issue for the viability of the project. Without a lender, the contemplated transaction will usually die. There are certain things that can improve the probability of obtaining hotel financing. They are to put together a transaction that clearly shows excellent financial potential and low investment risk. It must be presented to a lender in highly professional manner so that the opportunity stands out from all other submissions.
MTEL's experience and presence in the hospitality market gives lenders more comfort knowing that you are working with us to package and prepare your loan for underwriting because of our success and professional relationships.
We can help you with an existing bank relationship you have, or find alternatives through one of our many lending institutions both public and private with a variety of structures such as SBA, conventional, institutional equity, and bridge/mezzanine financing.
MTEL recognizes the importance of finding the best hotel-financing package for your hotel loan. To obtain the best possible financing for your project, it is essential to prepare a comprehensive financing package for the lender. In addition to the normal requirements of a lender, our specialized financing packages include:
- Description of the hotel project and contemplated transaction
- Detailed business plan
- Description of loan, its structure and requested terms
- Resumes and personal financial statement of owners
- Economic market studies and property performance in the market
- Projection of income and expenses for the hotel
- Description of management company experience and operating ability, if applicable
- Management company projection of income and expenses
- Rendering or photographs of the property, appropriate maps, plans and legal description, etc
- Architectural plans and specifications, if applicable
- Estimated capital improvement costs
- Identification of the project team including Architect, General Contractor, General Manager, Sales Director, etc
- Copies of major contracts including management contract, franchise agreement, etc
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