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FINANCING
Obtaining mortgage financing for a hotel venture is probably the most critical step in both the hotel development and the acquisition process. Since mortgage debt generally represents the largest source of cash invested in a hotel transaction, finding a mortgage lender is make-or-break issue. Without a lender, the contemplated transaction will usually die. The key to obtaining hotel financing is 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 recognizes the importance of finding the best hotel-financing package for your hotel loan. To obtain 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 financing package includes:
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Description of the hotel project and contemplated transaction
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Detailed business plan
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Description of loan, its structure and requested terms
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Resumes and personal financial statement of owners
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Economic market study and property performance in the market
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Projection of income and expenses for the hotel
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Description of management company experience and operating ability, if applicable
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Management company projection of income and expenses
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Rendering or photographs of the property, appropriate maps, plans and legal description etc.
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Architectural plans and specifications, if applicable
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Estimated capital improvement costs
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Identification of the project team including Architect, General Contractor, General Manager, Sales Director etc.
- Copies of major contracts including management contract, franchise agreement etc.
Realizing that every hotel/motel financing request is different and unique unto itself MTEL strives to offer you best options from its network of lenders to obtain loans from programs such as conventional loans, mezzanine loans, Small Business Administration SBA 7A and 504 loans, and creative financing for both the stable and the challenged projects:
- New Construction
- Purchase of existing hotels
- Refinancing
- Remodeling/Conversions
- “Cash Out" lending.
MTEL supports you in every aspect of the financing process and make the entire process as smooth as possible. Our lending programs give clients unique capital solutions that take them up the leverage curve.
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