NEW CONSTRUCTION

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, 3 to 5 year terms with the first two years being interest only. After the term expires, owners typically refinance and obtain traditional financing at a lower rate and a 25 year amortization.

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We believe we will be able to establish a market-leadership position given the outstanding quality of our location, brand and management team. Access Point Financial immediately recognized the project’s strength and helped us structure a viable transaction.

Ronny Finvarb

Principal

Finvarb Group

New Construction Application

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Transcation Size: arrowRight
Up to $40 million
Use of Proceeds: arrowRight
The development of new hotels
Interest Rate: arrowRight
LIBOR plus 450bps with a LIBOR floor of 2% (based on credit review & scope of project)
Typical Terms: arrowRight
3 -5 years. Interest only period of 24 months.
Recourse: arrowRight
Personal and/or corporate guarantees as well as credit enhancements from franchisor or Municipality
Debt Service Coverage Ratio (DSCR) Requirements: arrowRight
Minimum 1.25x at stabilization (typically year 3 post opening)
Leverage: arrowRight
Total overall debt on property not to exceed 65 percent of cost or 70 percent of stabilized value