Hotel and Motel Mortgage.
Hotel and motel mortgage financing are available through traditional and private funding sources. Whether you are looking to purchase, refinance, construction, renovate, or access equity, financing options exist.
In most cases, a minimum down-payment, or retained equity should be no less than 35% of the purchase price or fair market value. Hotels and motels are a unique asset class and accordingly lenders will at times opt out of providing financing. This is either due to capital restraints, or simply a lack of experience with underwriting and lending on the asset type.
DV Capital Corporation upholds relationships that enable fast and flexible hotel and motel mortgage financing.
Forget whatever you know about the process to obtain a residential mortgage. If you are wishing to finance a hotel or motel, be prepared to provide a copy of the operating expenses, income forecasts, financial statements, and resumes on the management team. In addition, you can anticipate the requirement for an appraisal and environmental report and other documents and or requirements during the due diligence process.
Your mortgage lender will want to ascertain if the hotel is “flagged” or “non-flagged”. An example of a flagged hotel is one that belongs to a national franchise such as Best Western. On the other hand, non flagged simply refers to an independently owned and operated hotel or motel. It is often more difficult obtaining a mortgage for a non-flagged hotel or motel and working with a Mortgage Broker might provide you with options you didn’t know existed.
DV Capital Corporation is able to arrange fast and flexible mortgage financing for hotels, motels, and inns in Ontario and British Columbia. Our relationships and access to various funding sources and products allow us to represent your mortgage requirements and explore options and negotiate on your behalf.
DV Capital Corporation
FSRA Brokerage License:. 13186
Email: [email protected]
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