{"id":7999,"date":"2018-01-11T10:39:53","date_gmt":"2018-01-11T18:39:53","guid":{"rendered":"https:\/\/www.tmcfinancing.com\/?p=7999"},"modified":"2022-09-20T11:50:44","modified_gmt":"2022-09-20T18:50:44","slug":"hotel-loan-interest-rates-keeping-up-rising-industry-costs","status":"publish","type":"post","link":"https:\/\/www.tmcfinancing.com\/es\/hotel-loan-interest-rates-keeping-up-rising-industry-costs\/","title":{"rendered":"Tasas de inter\u00e9s de pr\u00e9stamos hoteleros: mantenerse al d\u00eda con los crecientes costos de la industria"},"content":{"rendered":"

\"\"Hoteliers who want to finance hotel construction or expansion may be hesitant to take action because of talk of rising interest rates and uncertainty about how to start. It is true that they will find their task somewhat more challenging in 2018 than it was in 2017. Financial institutions funded a significant industry growth spurt in 2017 (an <\/span>8.8% increase in hotel construction<\/span><\/a> by room year-over-year as of August) and now they have begun to react to <\/span>analysts\u2019 predictions<\/span><\/a> of modest industry growth in 2018. <\/span><\/p>\n

Those factors will not necessarily have a lot of impact on individual businesses, however, since local conditions may differ strongly from national averages. If you are interested in hotel construction or expansion, you should seek out the financing you need. You will find a variety of options you might pursue\u2014some better than others. It will help to have some basic preparation before beginning the search for the financing that is right for you.<\/span><\/p>\n

What Hotel Loan Interest Rates to Expect <\/b><\/p>\n

You can\u2019t be prepared if you don\u2019t know what to expect. Discussions of loan conditions are unavoidably very general, since those conditions might depend on variables such as your credit score and financial history. General numbers can be cited though. One finance-related website provides a lengthy <\/span>list of commercial real estate loan types with their approximate interest rates<\/span><\/a> and LTV. LTV (loan-to-value) is the portion of the total cost of a project that the loan will cover. <\/span><\/p>\n

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How To Approach A Lender<\/b><\/p>\n

There are a number of other variables to consider when applying for a loan. Interest rates may be fixed or variable, meaning that the rates could rise. <\/span>Amortization<\/span><\/a> and the presence of <\/span>balloon payments<\/span><\/a> is a concern for most borrowers as well. SBA loans are fully amortized, meaning there will be no balloon payment. Aim for lenders in line with your budget and \u00a0your needs. <\/span><\/p>\n

Armed with that knowledge, you can begin choosing lenders to approach. Borrowers should have their financial information at hand and they have to be ready to present their project with the same conviction that inspired them. \u201cCreate the right story\u201d for the lender, <\/span>an insightful article<\/span><\/a> on this topic urges. <\/span><\/p>\n

Make sure you approach lenders with a healthy amount of wariness. If an offer seems too good to be true, that could very well be the case. \u201cAsk what other properties they have closed recently, who they maintain relationships with, ask them to walk you through a term sheet, and be transparent with you about the deal and the conversations they are having,\u201d Mac Dobson, Senior Vice President of\u00a0Aries\/Conlon Capital <\/span>advised<\/span><\/a>. <\/span><\/p>\n

Hotel Financing With a SBA 504 Loan<\/b><\/p>\n

You can see in the table above that the Small Business Administration (SBA) 504 loan has a high LTV ratio and low interest in relation to the loans being compared. When you receive a 504 loan, you are able to lock in a fixed rate much lower than most conventional loans. The 504 loan is administered by <\/span>Certified Development Companies (CDC)<\/span><\/a> like TMC Financing, which are nonprofit organizations set up specifically for that purpose. <\/span><\/p>\n

Choosing a 504 loan is a great option for hotel owners looking for reasonable, fixed rates, a low down payment, and a streamlined application process. The loan comes in three parts:<\/span><\/p>\n