Hotel Real Estate Advisor says this Advice on Loans Worth Reading

Finding money sources for clients and getting the financing done is a major challenge for a hotel real estate advisor in this current economy and funding climate. This step by step advice from a hospitality finance lender, Jane Larkin, managing director of Larkin Hospitality Finance, and published in HotelNewsNow.com is worth reading in my opinion. Here are some “excerpts” from the three parts that we believe are important along with links to the articles: Part 1 – “To begin, borrowers need to manage how they access the capital markets with the same precision they manage their properties. Hotel owners can improve their chances of successfully securing debt by understanding what information is important and when, and by rigorously managing the process of marketing their project to lenders.” It should be no surprise to investors and hotel and resort management executives to read here that the lender wants as much detail as possible when evaluating a potential loan. Part 2 – “While the success rate of closing a hotel loan isn’t very high (at only 15%), that’s not to say the task is anywhere near impossible. On the contrary, potential borrowers can enlist several proactive measures to better market their properties to lenders.” The caveat here from a hotel real estate advisor perspective is that the process will be long and potentially not successful. Do you have the time and money to see it through or are there are other avenues, such as hard money or private debt equity, to secure funds at less cost? Part 3 – “While a clearly defined process and appropriate documentation are essential for any loan request, it’s the inputs that make the difference. Think of the process as a recipe and the inputs as the ingredients. The quality of the ingredients used can make a dish that stands out.” The important takeaway here for hotel partners is it’s a multi-step process. Are you a bank, lender or private equity provider that is currently funding hotel loans in this market? What can you share with this hotel real estate advisor and our readers and clients that you believe to be the single most important part of the process today?