Lodging Finance recently arranged a purchase loan for an economy hotel along the Rte. 5 corridor in California. The property had been underperforming and was in need of substantial updating. This was a projection-based loan, as the past performance was unfavorable. We negotiated a loan that required only 15% down payment. This allowed the buyers to keep more of their capital on hand to complete the Property Improvement Program (PIP) and brand conversion.
What we liked about the deal: The Buyers had experience in turning around hotels, and the projections were thoughtful and made sense.
Loan Term: 25 years