CMBS HOTEL LOANS
Alliance Business Capital offers CMBS Hotel Loans as a Commercial Loan Broker. We work with a handful of Investors who fund CMBS Hotel Loans originated by Alliance.
Please view the below general guidelines for more information on the CMBS Hotel Loan Program offered through Alliance. Should you have any questions please do not hesitate to contact us.
CMBS Hotel General Guidelines
| Loan Amounts: | $3,000,000 - $50,000,000 |
| Loan Terms: | 5,7 or 10 Years |
| Amortization: | 20,25,30 Years |
| Minimum DSCR: | 1.40x |
| Maximum LTV: | 60% of Appraised Value depending on property characteristics |
| Interest Rate: | Fixed rate throughout the term and priced over corresponding swap rate |
| Eligible Markets: | Major Markets only at this time |
| Eligible Borrower: | Special-purpose entity required |
| Reserves: | Reserves are typically required for taxes, insurance, and replacement reserves. |
| Recourse: | Non-recourse except industry-standard "bad act" carve-outs |
| Prepayment: | Typical 2-3 year lockout, defeasance or yield maintenance thereafter |
| Assumable: | Permitted subject to Lender Approval |
| Security: | First-lien mortgage |
| Expense Deposit: | Varies but typical in the range of $25 - $50K |
| Origination Fee: | 1-2% to Alliance 0-1% to Lender |
| In-place Subordinate Debt: | May be allowed in accordance with CMBS standards |
| Future Subordinate Debt: | May be allowed in accordance with CMBS standards |
| Notes: | Limited Service Hotels with a nation flag affiliation No Boutique Hotels |
The following items are needed upfront to review a CMBS Hotel Loan Request:
- Most recent 2 years – year end financials (PL and BS)
- Trailing 12 months – most recent 12 months
- Current STR Report
- Copy of any Franchise Agreement
- Business Debt Schedule – on refinances
- Personal Financial Statements on all owners
- Commercial Loan Application – please complete in detail
If you have a copy of recent Appraisal please forward.
Please email these documents to allianceloans@msn.com or upload to our secure site at http://alliance.leapfile.net
Questions Or Comments
If you have any questions or comments about a Conventional Hotel Loan or a CMBS Hotel Loan please feel free to contact us.