The hotel industry is highly competitive and has many operational challenges that, in some cases, require financing to solve various issues. There are many options for financing a hotel property, but knowing which one is best for your specific needs may require some work. It’s essential to understand the different types of products available from lenders in the hotel and motel business marketplace so you can make informed decisions and get the best terms from trusted lenders to finance your hotel.
How Hotel and Motel Loans Can Help You
Whether you are just starting or own an existing hotel or motel that needs to expand, there are many reasons to get hotel financing. From purchasing a new property to acquiring independent hotels, there are various loan programs and funding options for borrowers. Those who need a loan or are looking to refinance can find the right solutions for their business.
Here’s a list of the top reasons for hotel financing from lenders:
- Working capital to improve cash flow
- Internet advertising
- Equipment purchases
- Existing hotel construction
- Inventory and supplies
- Property renovations
- Interior decorating and remodeling of existing property
- Updating an older hotel property
- Software and point of sales equipment purchases
- Emergency repairs
- Hotel acquisition
- Buying other real estate
- Additional hotel projects
Get Started Today
AdvancePoint Capital makes the loan application process a simple, straightforward experience.
How to Choose the Right
Hotel or Motel Small Business Loan
The first step in getting hotel financing is always to ask yourself why you need the money. What is the purpose of the funding for your hotel property? And how will the financing options benefit your hotel? The purpose and use will dictate what loan product borrowers should choose for their hotel. It’s not just about the interest rate. It’s best to balance interest rates with costs, length of time of repayment, payment frequency, and product flexibility when making the right choice. Looking over all of your hotel financing options is a great start for borrowers.