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Financing a Hotel with Funds for Formula Blue PIP with Conventional Loan in Virginia


Holiday Inn Express

Claypool, VA


Purchase loan of Holiday Inn Express of Claypool, Virginia


Conventional hotel loans at higher Loan to Value are more difficult to arrange mainly because unlike pre-2009 era the national lenders who would directly lend on hotel assets nationwide are either no longer in business or just do not lend on hotels, hence leaving us with the regional lenders to fund these conventional hotel loans. Since the appetite for the hospitality assets in the secondary market is anemic at best, the regional lenders have to hold these hotel loans on their books and due to regulations, they can only portfolio a limited volume of special-use assets such as hotels. Many hoteliers contact their local banks only to realize that the capacity of these banks for hotel loans is full and those banks cannot lend on hotels until one of their hotel loans is paid off. This is where Scientific Capital makes significant contribution to our clients, we match the loans with our regional lenders that are having capacity for new hotel loans.

This loan was structured at 80% Loan to Value as a five-year fixed loan fully amortized for 20 years and resetting every five years at starting rate of 3.85%. Since a syndicated partnership was acquiring this hotel, we were able to negotiate a limited guarantee for each partner. We also negotiated a reduced lender point of a quarter of a point reducing the cost for our client. The loan also includes nearly 1 million of PIP (Propery Improvement Plan) required by IHG Formula Blue design specifications. The PIP loan will be interest-only for a year once the disbursement begins.




What Our Client Thinks of Us


Ramin: Thank you once again for helping us secure loan for Holiday Inn Express and Suites.  We have always liked the way you handle project from beginning until closing. Really like the way you deal with lenders, insurance companies and franchise on our behalf. We have always got excellent loan terms because of you. Any question we have you have promptly responded through text message or email. We will definitely use your service in the future and will recommend your name to any one we know who needs assistance securing financing.

Thank you once again for getting us amazingly low interest rate and loan terms on conventional loan.

Hemal Shah


A major differentiator between us and the others is the loyalty of our clients. Here are the other hotels that we financed for this client not to mention a number of referrals that we have received from him.


 Purchase of the Holiday Inn Express and Clarion of Fredericksburg, Virginia
 Closing of Holiday Inn Express of Stephens City, VA
 Closing of the Super8 of Lebanon, Virginia
 Closing of Super8 of Norton, Virginia
 Closing of Super8 of Claypool, Virginia
 Closing of Sleep inn of Walterboro, South Carolina
 Closing of Refinance of Super8 of Lynchburg, Virginia




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