FINANCING EXISTING HOTELS: FF&E AND PIP
The benefits of renovation give hotels an edge in attracting new and returning customers. Guests expect a hotel to be well maintained and comfortable, provide superior service, and updated technology to meet or exceed guest expectations.
Hotel renovation is your best guarantee of continuous revenue. By industry standards, a renovation cycle peaks at three years. Many investors use the renovation to upgrade their status with their brand, and some use it as an opportunity to change Brands.
SECURING RENOVATION FUNDS
Option One; Refinance your hotel, frequently at a lower rate, for a longer period and include FF&E in the new loan. PIP financing is often included allowing the owner to make structural improvements to the hotel. The hotel typically has substantial equity allowing the owner to re-fi the hotel and include an FF&E plus a PIP without being required to inject new cash equity into the property.
Second option: SBA-Capital will provide 100% FF&E and PIP financing, if the owner prefers to not re-fi their hotel, provided there is adequate equity in the hotel.
FIND A RENOVATION LENDER YOU CAN BANK ON
A delay in securing financing for an operational hotel renovation can seriously jeopardize guest experiences and the hard-won equity of your hotel brand.
SBA-Capital, with years of lending and construction experience, understands the entire process of hotel renovation. We are truly your partner and will streamline the process from your loan request, loan approval, and the closing of your transaction. Choose wisely, and your renovation can be a positive experience for you and your guests.
DON'T MISS OUT ON THE NEXT GREAT TIP!
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