Refinance of Hotel with Conventional Loan and Reduced
Guarantee and Foreign Partners in Virginia
Scientific Capital arranges 3.1 million conventional loan for the refinancing of the Red Roof Inn of Winchester, Virginia.
Many hotels in the US are owned by multiple partners where some of these partners are foreigners and are unable to provide personal guarantee. The majority of the banks in US require full guarantee. Very similar to the Microtel of Cartersville, GA,this project required reduced guarantee as well. Scientific Capital was able to structure this standard commercial loan with the reduced guarantee.
A major success factor in any hotel financing project is proper valuation. Many local lenders use local general commercial appraisers who among other property types appraise hotels. Since they rarely appraise hotels, their database and knowledge of the hospitality markets may not be as vast and up to date as the national hospitality appraisers. Scientific Capital generally works with lenders who contract national appraisers with rich database and extensive knowledge of every market. Proper appraisal by a national hotel appraiser was a key factor in this project as well.