Hotel Property Program
For general and specific inquiries, complete our On-Line Form
|Property Type:||Full or Limited Service Franchised Hotels and Motels properties that have good location, occupancy, and maintenance. Non-Flagged properties may be considered on a case-by-case basis.|
|Loan Security:||First fee mortgages encumbering completed projects along with customary assignments and pledges.|
$1,000,000 to $35,000,000 per property. Larger loans are case by case.
|Term:||Five (5), Seven (7) and Ten (10) Years.|
|Amortization||Up to Thirty (30) year. Typically, Twenty-five (25) years and Twenty (20) years.|
|Maximum LTV:||75%. Typically, 65% - 70%.|
|Minimum DSCR:||1.35:1 minimum, preferred 1.40:1 or better.|
|Recourse:||Non-Recourse, except for standard lender carve-outs.|
|Commercial Space:||Permitted providing commercial space does not exceed 20% of square footage, or 20% of effective gross income. If either occurs, pricing and structure may change.|
|Occupancy & ADR:||Historical three years, most recent year-end, trailing twelve months, and current (not more than 30 days old) Occupancy and ADR Reports on a monthly basis with annual averages. Economic minimum of 40%, Actual, or Market, whichever is greater. Minimum 60% average historical occupancy required. A variance to these requirements are on a case-by-case basis.|
|Replacement Reserves:||5% minimum of Effective Gross Revenue annually, or as scheduled in the Property Condition Assessment Report. Monthly escrow is required.|
None permitted. FF&E cannot be financed or leased.
|Other Conditions:||See Standard Terms and Conditions. Underwriting requires a minimum management fee and franchise fee.|
|Interest Rates:||Fixed Rates, at closing, are established as a Premium over the U. S. Treasury Securities for the loan term. Rate Buy-Downs are available. Rates are provided upon submission of the specific property.|
ALL terms are subject to change.
An Executive Summary of the requested transaction, loan amount, terms and conditions, all positives and negatives that may impact the transaction.
Description of the Subject Property, including street address, square footage, number and type of rooms, meeting space, office and lobby space, amenities, restaurant square feet and seating capacity, year built, and/or renovated, description of construction details, HVAC, and paving information, including total number of parking spaces (covered, uncovered, and handicap spaces).
Information on the Borrowing Entity, to include charter, articles of incorporation, by-laws, shareholders and percentage of ownership. Information on the Key Principal(s), and Property Manager including hotel and real estate experience, financial capacity, current personal financial statements, and the most recent two (2) years of Income Tax Returns.
Property Operating Statements and Occupancy, ADR, and REVPAR for the (i) past three (3) calendar years, (ii) current year-to-date actual and remainder of the year budget, and (iii) the trailing 12-month statements.
Schedule of all significant capital expenditures including costs (i) incurred during the past three (3) years, and (ii) budgeted for the next twelve (12) months for the Subject Property.
Copies of recent appraisal, engineering and environmental reports. (Do not order if not available.)
Statement of how loan proceeds will be used.
Date acquired (if refinancing), original purchase price, closing statement, and capital improvement costs since acquisition, or a copy of the purchase contract, escrow agent and title company, if a purchase transaction.
Tel: 800-366-7769 Fax: 830-796-4774