loan programs

More than any hotel finance company, Access Point Financial offers customized solutions and provides certainty of execution for franchisees who seek to capitalize on unique market opportunities. Being a preferred lender with close alliances to leading associations and brands in the hospitality industry, we are able to provide tailored loans to meet the specific needs of hotel owners. APF provides hotel financing expertise and efficient underwriting and loan processing.

APF is considered a leader in the hospitality industry for acquisitions, conversions, renovations and construction loans. Other financial institutions only look at the hotel’s historical financial performance when making a credit decision. APF’s focus is on proforma based underwriting and understanding the transaction in detail. Each loan opportunity is unique. Our focus is on value-add transactions where the hotel is undergoing a conversion or the hotel must undergo a brand mandated Property Improvement Plan (PIP) or renovation. We will also look at construction loans, with strong and experienced sponsors, for a strong brand in a robust and stable market. We understand these types of transactions intimately and work diligently with clients to ensure a smooth and successful closing.

APF loan terms are based on the creditworthiness of the borrower and the viability of the project, and our model allows for transparent loan product delivery.

ACQUISITION/CONVERSION LOAN PROGRAM

ACQUISITION/CONVERSION FINANCING

Access Point Financial offers short term mortgages up to $25 million or up to 70 percent stabilized value for:

  • Acquisition
  • Refinance
  • Discounted Purchase Option (DPO)
  • Note Purchase

These loans can typically be closed much faster than traditional lenders, allowing a buyer to quickly acquire, renovate and stabilize the property until permanent financing can be sourced. Whether purchasing a property or refinancing current debt, an APF client can be confident in the ability to close on the transaction quickly and access the capital necessary to complete the acquisition, renovation or brand conversion.

transaction size

Up to $25 Million

Use of proceeds

Acquisition, refinance, discounted purchase option or note purchase paired with a recently completed or planned renovation. Allows owner to acquire, renovate and stabilize the property until which time permanent financing can be sourced

Interest Rate

Floating blended rate typically around 8% based on credit review and scope of project

Typical Terms

Up to 36 months (18 months interest only with 18 months P&I based on a 25-year amortization schedule)

Recourse

Personal and/or corporate guarantees as applicable

Debt Service Coverage Ratio (DSCR) Requirements

Minimum 1.25x-1.30x at stabilization (typically 2-3 years)

Leverage

Stabilized Loan to Value not to exceed 70%

CONSTRUCTION LOAN PROGRAM

CONSTRUCTION FINANCING

New construction loans are currently available for franchised hotels in the $5 million – $40 million range with credit enhancements from the franchisor and/or Municipality. These loans are generally short term loans, 2 to 5 year terms with the first two years being interest only. Following the completion of construction, owners typically refinance the loan and obtain traditional financing at a lower interest rate.

transaction size

Up to $40 million

Use of proceeds

The development of new hotels

Interest Rate

Floating over libor. Based on credit review & scope of project

Typical Terms

3 -5 years. Interest only period of 24 months.

Recourse

Personal and/or corporate guarantees as well as credit enhancements from franchisor or Municipality

Debt Service Coverage Ratio (DSCR) Requirements

Minimum 1.35x at stabilization (typically year 3 post opening)

Leverage

Total overall debt on property not to exceed 75% LTC or 65% stabilized LTV

RENOVATION/FF&E LOAN PROGRAM

Access Point Financial provides Renovation/FF&E financing for:

  • Hotel renovations
  • Property improvement plans (“PIPs”)
  • Brand conversions
  • Furniture, fixture and equipment “FF&E” for a new construction project.

These loans typically range from $500,000 to $10 million and are amortized over the useful life of theassets, typically 3-10 years. Our experience and knowledge of the hotel industry enable us to underwrite and close these loans in a shorter time period than most lenders. APF is able to thoughtfully structure a Renovation/FF&E loan to meet the franchisees’ specific needs and the requirements of their mortgage lender several loan and capital lease.

APF is able to thoughtfully structure a Renovation/FF&E loan to meet the franchisees specific needs and the requirements of their senior mortgage through several loan and capital lease options.

Renovation/FF&E financing can provide up to 20 percent of the total project costs for a new construction project. This allows the developer to more easily secure construction financing as this lowers the overall risk to a potential construction lender.

transaction size

Up to $10 Million

Use of proceeds

Up to 100% of cost for the acquisition of FF&E for the development of new hotel properties or the refurbishment or conversion of existing properties to include soft cost and construction related items

Interest Rate

Floating rates from 7–10% based on credit review and scope of project

Typical Terms

3 – 10 years based on useful life of the equipment (typically 5-7 years). Interest only period of up to 18 months available based on cash flow and stabilization needs.

Recourse

Personal and/or corporate guarantees as applicable

Debt Service Coverage Ratio (DSCR) Requirements

Minimum 1.25x at stabilization (typically 18-24 months post renovation)

Leverage

Total overall debt on property not to exceed 85% percent of cost for new construction or 70% percent of stabilized value for an existing property