What types of loans are best in buying a branded hotel?
1st time looking into purchasing a branded hotel. It has 55% occupancy with 11%-16% Cap Rate. Asking about $8Mil. Trying to figure out best loan to finance the property, business, equipment, and content. Any one has suggestions?
Hi Ram Battar,
Thank you for reaching out.
For a loan of that size and complexity,` you have three primary options.
1. A traditional bank loan,
2. SBA 7a Loans for CRE, and
3. SBA 504 Loans.
To get a better understanding of each one, and how they differ I recommend reading our Guide on Hotel Financing.
Best of luck,