April 22, 2015
By Bob Coleman
Editor, Coleman C-Suite Small Business Lending Report
Yesterday’s Coleman 7th Annual Hospitality Financing Webinar drew the largest number of attendees by far.
Hospitality lending continues to be a very profitable lending niche for SBA and conventional lenders.
Here are five quick facts that the C-Suite should consider
- 61% of current hotel owners who attended a recent hotel conference say they want to build another hotel this year.
- Therefore, your next hotel construction project may found a phone call away with your current hotel borrowers.
- In some areas of the country, it is cheaper to build than to buy existing hotel properties. Find out where your market stands, and strategize accordingly.
- Brand matters in new construction. You want to be with the top line brands (Marriott, Hilton, Starwood, etc.) that can command higher room rates.
- For SBA financing, the market is competitive on rate, say P+2. Most lenders are holding firm demanding 20 to 25% equity. Webinar guest Anthony Falor of auction.com says there are many “good” buyers who are willing to step up with higher cash down payments.
If you would like to purchase the webinar and a transcript of the event, please contact firstname.lastname@example.org or call (818) 790 4591.