If you are a hotel development consultant looking for money to finance needed renovations or expansion of an existing lodging property, keep searching. The amount of lenders going into the New Year that will consider any type of financing, such as bridge loans for the short term, is on par with this year as it comes to an end. According to earlier news in March this year and recent news just this week, the stories remain the same. Here’s a recap just published in HotelNewsNow.com: “Throughout the course of 2011, few lenders decided to open their floodgates and provide more access to debt for buying and renovating hotels. As we close out the year, the lending market still is pretty tight but brands are knocking even harder on the door with required capital improvements.” Of course, bridge loans are still in vogue. Read more here on what one lender has to say about rates and terms if you are a hotel development consultant looking for the best deal. Other hotel capital advisors also reported similar news earlier this year and suggested a bridge loan may be a good option: “For those owners who don’t want to unload the property and can’t afford capital improvements, one option that is much more prevalent today than even six months ago is to seek out a bridge loan. A bridge loan is short-term, enables owners to do minor renovations and is underwritten based on future value and future cash flows.” Still, if your hotel business plan includes expanding an existing location, funding for construction and development is almost non-existent by most accounts. Are you a hotel development consultant currently looking for renovation or expansion financing for a hotel project? What alternatives are out there that you have encountered and what are the pitfalls if any that can be shared here our readers??
