A hotel is a business that happens to own a building, and hospitality lenders underwrite it that way. There is no rent roll to read: the income is re-sold every single night, which is why a hotel file turns on revenue per available room, occupancy against the competitive set, and what the brand agreement obliges the owner to spend.
What the file turns on
Trailing twelve months of operating statements, a STR report against the comp set, the franchise agreement and its remaining term, and the property improvement plan — the PIP is usually the number that decides whether a deal pencils.
Where deals fail
A flag change mid-transaction, a PIP that lands after the loan is sized, a seller who reports revenue the tax returns do not support, and management that has no third-party hotel experience.
Texas specifics
Houston and Dallas run on corporate demand, Austin and the Hill Country on leisure, San Antonio on convention traffic. The same room count performs very differently across those markets, so the comp set matters more than the state average.
Our minimum loan is $200,000. We are a direct commercial lender working across the 43 states we serve, in business since 1998. We do not publish a rate for this product because the number depends on the file — call and we will quote the deal in front of us.
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