RENOVATION/FF&E LOAN PROGRAM
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, such as Renovation/FF&E Loans. 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.
- Hotel renovations
- Property improvement plans (“PIPs”)
- Brand conversions
- Furniture, fixture and equipment “FF&E” for a new construction project.
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
Floating rates from 7–10% based on credit review and scope of project
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.
Personal and/or corporate guarantees as applicable
Debt Service Coverage Ratio (DSCR) Requirements
Minimum 1.25x at stabilization (typically 18-24 months post renovation)
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