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,
Disclaimer: We spend hours researching and writing our articles and strive to provide accurate, up-to-date content. However, our research is meant to aid your own, and we are not acting as licensed professionals. We recommend that you consult with your own lawyer, accountant, or other licensed professional for relevant business decisions. Click here to see our full disclaimer.
Product or company names, logos, and trademarks referred to on this site belong to their respective owners.