Financing & Other Resources
Since financing in one form or another is an integral part of most transactions, its availability and terms can dramatically affect values. Many sources of financing that had been very active until recently are no longer around. While the pool is rapidly shrinking, there are still some lenders making loans for good quality seasoned assets. There are virtually no loans for new development. Underwriting standards are much more stringent than they had been in the past. This is reflected in higher equity requirements, lower loan to values and more conservative debt coverage ratios. They are looking very closely at both historical and current income trends. Projections are very conservative. Less competition and the fact that hospitality is now considered a riskier class of real estate has resulted in an upward trend in interest rates. Since financing plays such a key role, we are constantly updating our data base of hospitality lenders.
We are a great source for referrals to some of the most qualified professionals in related fields in the hospitality industry, including management companies, legal firms, appraisers, consultants, title, environmental, etc. We have first hand experience with every professional we refer.