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Conventional Hotel Loans from Alliance Business Capital

Alliance now offers Conventional Loans on select Flags Nationwide.

Acquistion

We can assist with a Hotel Acquisition Loan

Refinance

Looking to Refinance – we can assist with that

New Construction

We offer several Hotel Construction Loan Programs

Alliance Business Capital is pleased to now offer Conventional Hotel Loans that meet the below criteria.

Flags

Conventional Loan Are available of the following flags.

  • Hilton

  • Marriott

  • IHG

  • Hyatt Selectively

  • Independent Selectively

Brands – Upper Midscale

Limited Service, Select Service, Extended Service, No Economy

  • Fairfield Inn & Suites

  • Hampton Inn/Suites

  • Hilton Garden Inn

  • Holiday Inn

  • Holiday Inn Express

  • Home2 Suites

  • Moxy

  • TownePlace Suites

Brands – Upscale

We can assist with the following Upscale Brands.

  • AC

  • Aloft

  • Courtyard

  • Hyatt Place

  • Residence Inn

  • Homewood Suites

  • Hyatt House

  • Hyatt Place

  • Springhill Suites

  • Staybridge Suites

Products

We offer the following Conventional Loan Products.

  • Acquisition

  • Refinance

  • Construction

Loan Structure

We offer the following deal structure on Conventional Loans.

  • Loan Size 

    • $5MM – $20MM

  • Loan Term 

    • 6 to 36 Months of I/O for Construction / PIP
    • 3-5 Years Conventional

  • Rates 

    • Variable Index – SOFR (1-Mo or 3 Mo)
    • Fixed Rate – UST (3Yr or 5 Yr)

  • Amortization 

    • 2015 to Ground-Up: 25 Years
    • 2000 to 2015 Built: 20 Years

  • LTC/LTV 

    • 70% Max for in-place cash flow
    • 65% for Construction / PIP

  • Recourse 

    • Typically Required

  • DSCR 

    • 1.35 – 1.50 Min

  • DY 

    • 10% Min

  • Deposit Account 

    • Operating Deposit Account Required

  • CapEx Account 

    • 4% Gross Revenue

  • Origination Fees 

    • 2% – 1% to Alliance and 1% to Lender

  • Engagement Fee 

    • Alliance Business Capital has an engagement fee of $1750 to $2500 depending on deal complexity

Eligibility

Conventional Loans must meet the following eligibility requirements.

  • Sponsor/Guarantor 

    • Primary Focus on Hotels
    • Industry Experts
    • Presence in Market
    • Previously Established
    • Guarantor to show minimum of 100% net worth of gross debt

  • Geography + Market 

    • Nationwide – Secondary Dynamic Marketplaces
    • High Barrier to Entry
    • Multiple Demand Drivers (government, education, medical, corporate travel, military, leisure travel)

  • PIP Funding Requests 

    • $2.5 Million or below “Change of Ownership PIP” preferred
    • $2.5 Million or greater will be dependent on geographic location and limited to Sponsors that are well capitalized and highly experienced

Conventional eligibility determined by financial strength and hospitality ownership/operational experience of Sponsor. Guarantor(s) to have combined tangible aggregate net worth equal to 100% of the outstanding guaranteed obligations and to maintain at all times a minimum combined liquidity defined as unrestricted cash and cash equivalents of not less than 10% of the outstanding guaranteed obligations.

Alliance Business Capital is a Commercial Loan Intermediary / Advisor and not a direct lender.