Scientific Capital was referred to the buyers through the seller of this hotel. The buyers spent over 3 months trying to obtain a conventional loan from a local bank, however, time ran out and the buyers were losing their good faith deposit and more importantly, losing a significant opportunity of acquiring this hotel which was just in their vicinity and an crucial part of their expansion strategy. This is the buyer’s first franchise acquisition who needed hand holding in all aspects of this acquisition. Fortunately, regardless of the level of the sophistication of a buyer, Scientific Capital tightly manages all aspects of the purchase such as handling the application and the approval of the franchise, the interaction with the attorneys, the insurance agent, the escrow and title, the third party inspectors such as the appraiser, the surveyor, etc. and any other party involved with the project. This means that from the starting point to the funding, Scientific Capital processed this loan in 45 days. Due to limited liquidity, it was important in this loan to include costs, franchise fee, working capital of 30K, and the PIP and FF&E costs into the loan which is how Scientific Capital.

The difficulties that the borrowers faced with this loan in the local market were 2016 drop of revenues of the Super 8 as it is observed to be the case for many hotels in the region, lack of experience of the buyers in the industry specially with the franchise operations, and other sponsorship issues that are not suitable for seeking financing from the local market.

Scientific Capital is able to present the particulars of a project that may look negative on the surface clearly to national lenders and find suitable lending sources that can understand the circumstance and close many hotel loans that otherwise fail to close in our industry.