Financing the Purchase of a Hotel in New York
with $2.69 million SBA 7a
Econolodge Albany, NY
Considering the hotel’s insufficient cashflow we had to base the the financing on the proforma cashflow. Projection based financing is more reasonable when the buyer has multiple other successful hotel operations specially in the same area of the subject hotel but in this case the buyer had limited experience and no other hotels. As such, Scientific Capital had to rely on other strength of the buyer to justify the projection and the success of the future operations. The hotel has some minimal PIP which was included in the loan and the renovations is going to help boost the revenue for this hotel.