Hotel Properties:

National Franchise, full and limited service hotel properties get the best rates. Upscale, full service boutique hotels in strategic locations are also desired. Smith-Craine can assistin brokerage nationwide

Lenders typically prefer central business districts or airport locations; Suburban locations, where much of the hospitality product is located, that demonstrate strong demand and ability to compete at market rates will receive favorable and competitive treatrment from lenders.  They will require solid market strength as is determined by, among other factors, RevPar trends, ADR comps, occupancy/breakeven and trends in population and employment. These statistics are available in STAR reports

Loan Size:

$2 Million and up for long term debt, $3 Million and up for mezzanine loans and equity financing, $5 Million and up for bridge, $5 Million and up for construction

Debt Service Coverage:

1.35 x minimum on senior CMBS debt. No DSCR’s may apply on subordinated, structured or development transactions

Loan-to-Value Ratio:

Up to 75% LTV for first position debt, up to 95% LTV with mezzanine piece. Construction and bridge debt up to 90 % LTC, equity up to 95% LTC

Loan Term:

Long term debt 5, 7 or 10 years, short term debt and equity financing 12-36 months, extensions available

Amortization:

30 years or less depending on property specifics

Fees:

Smith-Craine fees are 1.5 - 2% of loan amount

Third Party Fees: An appraisal, survey, seismic/engineering and environmental report are required. Existing reports may be acceptable, however will require lender approval. Lender may request updated reports if reports presented are dated