CapEx/FF&E Financing

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

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

These loans typically range from $200,000 to $25 million and are amortized over the useful life of the improvements, typically 3-10 years. Our experience and knowledge of the hotel industry enable us to underwrite and close these loans in as little as two days.

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

CapEx 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.

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Working with APF on our Sleep Inn Refresh and Holiday Inn Express PIP was a quick and easy process. They promptly provided us with a term sheet ofering us the best terms we could find in the market and were able to close and fund the loan expeditiously.

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Transaction Size: arrowRight
Up to $25 Million
Use of Proceeds: arrowRight
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: arrowRight
Fixed rates from 7–10 percent based on credit review and scope of project
Typical Terms: arrowRight
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: arrowRight
Personal and/or corporate guarantees as applicable
Debt Service Coverage Ratio (DSCR) Requirements: arrowRight
Minimum 1.25x at stabilization (typically 18-24 months post renovation)
Leverage: arrowRight
Total overall debt on property not to exceed 80 percent of cost for new construction or 85 percent of stabilized value for an existing property