April 20, 2015
By Bob Coleman
Editor, Main Street Monday
Yep. Main Street Wednesday, will now lead off the week for the Coleman Report in the AM slot.
Hotel News Now offers a slew of articles about the recently concluded 27th annual Hunter Hotel Conference.
The link is at the bottom and offers great background for the hotel industry, but I want to focus on financing.
Here is a snippet offered by News Editor Shawn Turner quoting Peter Berk of PMZ Realty Capital.
Berk said people come into his office all the time asking what the maximum loan is they might be able to get. “Well, the max could be a 90% loan with an 8% interest rate,” he said. “There’s a cost to everything.”
Another example offered up by Berk: A developer is building a $5-million Holiday Inn Express and needs a $4-million loan.
Nacorda said leverage on such a deal would be between 75% and 80%. If it’s new-construction, the rate would be prime plus 2.5% to 2.75% for an interest rate of about 5.75% or 6%. The construction loan and permanent loan would close at about the same time, would be full recourse and would amortize over 25 years.
Read Shawn’s article here
Check out the Hotel News Now website here.