Deal Summary – Holiday Inn Express Construction Loan

HotelFinance.biz arranged SBA 504 construction financing for a new Holiday Inn Express in Peekskill, NY. The sponsor, a first‑time hotel owner with a successful Greek restaurant business, needed a financing structure that would support ground‑up development while preserving liquidity. We secured an SBA 504 loan that delivered long‑term fixed‑rate financing, lower equity requirements, and a structure designed to help new hotel developers enter the hospitality industry with confidence.

Borrower Challenge

As a first‑time hotel owner, the borrower faced several challenges:

• Transitioning from restaurant ownership to hotel development
• Securing financing for a ground‑up, IHG‑branded hotel
• Meeting construction, franchise, and PIP requirements
• Finding a lender comfortable with a first‑time hotel sponsor
• Preserving capital while still meeting SBA equity guidelines

Conventional lenders were hesitant due to the borrower’s lack of hotel ownership experience and the complexity of new construction.

Our Solution

HotelFinance.biz structured the project under the SBA 504 program, enabling the borrower to:

• Reduce the required equity injection compared to conventional construction loans
• Lock in long‑term, fixed‑rate financing ideal for new hotel development
• Finance construction, site work, FF&E, and soft costs within one structure
• Work with a lender experienced in hospitality and SBA construction projects
• Enter the hotel industry with a strong, nationally recognized brand

This structure provided the sponsor with the stability and flexibility needed to successfully complete the project.

Financing Overview

• Loan Program: SBA 504
• Loan Purpose: Ground‑up construction
• Property Type: Holiday Inn Express (IHG)
• Location: Peekskill, New York
• Structure: SBA 504 construction financing with long‑term fixed rates
• Use of Proceeds: Construction, site development, FF&E, soft costs, and brand‑required improvements

Transaction Snapshot

• Brand: Holiday Inn Express (IHG)
• Sponsor Profile: First‑time hotel owner with strong restaurant operations background
• Project Type: Ground‑up hotel development
• Execution: Coordinated SBA 504 structure with hospitality‑focused lending partners
• Result: Lower equity requirement, fixed‑rate financing, and a successful path into hotel ownership

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