Financing the Purchase and conversion of
Hotel to Red Roof Inn
In projects where the hotel’s revenue is not fully stable and specially a change of brand and a conversion is involved, SBA loans are the most suitable option. Scientific Capital worked closely with the clients to prepare a monthly two-year projection of the profit and loss of the hotel under the Redroof brand during and after the PIP (Property Improvement Plan required by the franchisor). This projection and its assumptions was the key in justifying the future revenues and the profits and the ability of the hotel to cashflow the debt, hence, qualifying this transaction for the SBA loan requested.