Hotel Bridge Loans
Alliance Business Capital, through our Bridge Lending Partners, offers Hotel Bridge Loans on Hotels located throughout the U.S.
Please note that we are currently only able to assist with a Hotel Bridge Loan on Hotels that are located in a metropolitan area (exceptions on a case-by- case basis).
Alliance welcomes all Hotel Bridge Loan inquires.
General Bridge Guidelines for Hotel Properties
| Loan Amounts: | $2 Million - $35 Million Lower / Higher loan amounts are possible on a case by case basis |
| Loan Purpose: | Transitional, value add and event driven |
| Terms: | 1-5 years |
| Leverage: | 70% Maximum Most deals fall in the 60% -65% LTV range |
| Recourse: | Non-recourse except for "bad boy" carveouts; further guarantees may be required on a case-by-case basis |
| Prepayment: | Freely pre-payable. Minimum interest may apply |
| Debt Service Coverage: | None, Partial or Non-Cash Flowing |
| Amortization: | Typically Interest Only Amortization structured on a case-by case basis |
| Origination Fees: | Alliance - 1-3% Lender - 0-2% |
| Due Diligence Deposit: | Upon acceptance of terms a deposit directly with the lender for due diligence will be required and typically runs in the $10K - $25K range |
| Alliance Engagement Fee: | Alliance typically has an engagement fee on bridge loans of $1500 - $2500 depending on deal complexity |
The following items are needed upfront to review a Bridge Hotel Loan Request:
- Most recent 2 years – year end financials (PL and BS)
- Current YTD Profit and Loss Statement with Balance Sheet
- Business Debt Schedule – must tie into the most recent Balance Sheet
- Trailing 12 months – most recent 12 months
- Current STR Report
- Copy of any Franchise Agreement
- Personal Financial Statements on all owners
- Commercial Loan Application
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
Alliance welcomes the opportunity to assist you with your Bridge Loan request on a Hospitality Property.
Please note the above guidelines are the guidelines of just one Investor that Alliance originates Bridge Loans for, and they are subject to change at Investors sole discretion. Alliance works with a handful of Bridge Lenders to provide our borrowers with the best possible options for financing their hotel properties when a bridge loan is needed.