Financing the purchase and Renovations/PIP of Hotel with
80% Conventional Loan in Virginia
Holiday Inn Express
Stephens City, VA
Conventional hotel loans at higher Loan to Value are more difficult to find and in different markets/states, the customary LTV among the lenders for special use properties such as hotels is anywhere from 65% to 75% but in some markets some lenders push to 80%.
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 4.69%. Since a syndicated partnership was acquiring this hotel, we were able to negotiate a limited guarantee for each partner proportional to their ownership percentage. We also negotiated a reduced lender point lowering the overal cost to our client. The loan also includes 1.2 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.
Our Other Projects With This Client
Conventional 80% loan for purchase/PIP of leased hotel
Finance the purchase and PIP of two hotels at 80% LTV
Assumption of the existing seller's CMBS non-recourse loan for the buyer
Finance the purchase and PIP at 70% LTV