Since 2007, Biz2Credit has helped thousands of businesses -- including numerous hotels and motels -- to secure financing quickly and at attractive rates. Our technology platform and dedicated team help you throughout the process to get the funding option for your business need.
Business Loans for Hotels and Motels
The U.S. travel and tourism industry is a $1.4 trillion industry. After experiencing a decline in the early 2000s, the hospitality industry is ripe for investment, and hotels are no exception. In addition to fueling American economic growth, hotels, motels, and other lodging industries have offered the highest rates of debt repayment compared to other types of commercial real estate. If you're looking for hotel financing, now is the time to apply.
Loans for hotels can be used for a number of purposes. First and foremost, hotel loans can be used to buy land, buy an existing hotel, or construct a new one. If you already have a hotel and are looking to improve it, loans may be used to fund renovation projects or to purchase new equipment or machinery. Suffice it to say, if you're looking to be competitive in the hotel industry, chances are that you'll need a loan to do it.
When assessing candidates for financing, lenders tend to favor higher quality hotels in prime locations, leaving smaller and independent properties struggling to secure financing. Moreover, most traditional lenders require applicants to make a 20-50% down payment on a hotel property in order to receive loan financing. This prohibitively high cost of capital can prevent smaller ventures in the hospitality industry from accessing the funding that they need to grow and develop their businesses.
Hotel News Now, one of the leading providers of hotel industry news, offered tips to entrepreneurs interested in financing an independent hotel in a recent post. Independent hotels often have a harder time securing financing in comparison to branded hotels, which often have a transparent and proven business model in place for lenders to see. Two important tips are:
Providing proof of profitability - For any business operation, it is important to demonstrate to the lenders that you are running a profitable and sustainable business model when applying for loans for hotels -- especially if there is not much known about the hotel.
Having a marketing plan in place - Right out of the gate, brand name hotels have an advantage over independents when it comes to funding because lenders already have awareness of the brand. While independents possess an unknown factor, and thus, lenders are going to want to know more about the marketing plan in place to attract prospective guests. In short, they want to be convinced that rooms will be filled.
BizCredit's platform makes available a multitude of credit solutions for hotels and motels in need of financing, featuring long-term below market fixed rate financing and lower down payments.
We have helped many entrepreneurs secure small business loans for hotels. Speak with one of our team members today to see how we can help you by calling (212) 644-4555 or email firstname.lastname@example.org.
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Dean was great to work with
Saturday, April 22, 2017
Dean was great to work with. highly recommended
Biz2credit got me the funds i needed quick
Thursday, April 20, 2017
Before coming to biz2credit, i had been in touch with a couple of other companies looking to grow my business. i was in need for funding as soon as possible. i was in contact with dean, who was very helpful and told me everything i More...
Thursday, April 20, 2017
A few clicks
Monday, April 17, 2017
A few clicks, a few documents that were sent, a few phonecalls and hop! my business was funded. a great experience, easy and simple!
I'm giving robert a 5* review
Friday, April 14, 2017
I'm giving robert a 5* review he did a very good job getting this put together