Hotel Financing Programs

NEW PROGRAMS Cambria Suites Development Cambria Development Program
HFR is pleased to offer a program exclusively for the development of Cambria Suites.    » Learn More
TCF Equipment Finance, Inc. TCF Equipment Finance, Inc.
Furniture, fixture, equipment & technology leasing.    » Learn More
  1. Bridge financing
  2. Long-term financing
  3. Short and medium-term financing
  4. Furniture, fixture & equipment and information technology financing
  5. Construction/mini perm financing
  6. Take out loan
  7. Portfolio loans
  8. Mezzanine loans
  9. Equity source introductions
  1. Bridge financing to stabilize property
    • Non-recourse
    • Up to 75% loan to cost
    • Plus up to 100% renovation costs
    • Up to 3 years to stabilize
    • 10 Million minimum
    • Floating rate
  2. Long-term financing
    1. Insurance company & pension fund - financing for stabilized properties
      • Non recourse
      • Up to 75% loan to value
      • 3 to 20 year terms
      • Up to 30 years amortization
      • Rate lock at application
      • Minimum DSCR 1.25% primary markets
      • $4 to $200 Million
      • Earn outs
      • Structured pre-payment options
      • Fixed or floating rate
    2. Securitized financing (conduit financing) for stabilized properties
      • Non recourse
      • Up to 80% loan to value
      • 5 to 20 Year terms Up to 30 years amortization
      • Rate lock option
      • Minimum DSCR 1.20%
      • Primary to tertiary markets
      • $2 to $40 million
      • They service their loans
      • Prepayment penalties
      • Permanent fixed rate
  3. Short and medium term financing
    1. Bank financing
      • Non-recourse or recourse with burn off
      • Up to 80% of cost or 75% of value
      • 1 to 5 years
      • Interest-only or fixed rates
      • $2 to $40 Million
      • Spreads over LIBOR or applicable treasuries
      • Primary to tertiary markets
    2. Insurance Company Program
      • Non-recourse
      • Up to 75% of cost or value
      • $5 to $30 Million
      • 3 year term with two 1 year options
      • Flagged hotels
      • Primary markets
      • Floating rate loan
      • Anticipated conversion to long-term fixed rate loan
  4. Furniture Fixture Equipment and Information Technology financing
    • Generally recourse
    • Up to 100% financing
    • 2 to 7 year term
    • $30,000 to $5,000,000
    • Fixed rates
  5. Construction/mini perm financing
    1. Recourse with burn off potential
      • 80% of cost
      • Up to 75% of value
      • 2.25 to 2.75 basis points spread over LIBOR
      • 3 to 5 year floating or fixed options available at stabilization
      • $10 to $40 Million
    2. Non-Recourse with Completion Guaranty
      • Experienced sponsors with similar projects
      • Up to 85% loan to cost
      • $40 million minimum
      • up to $150 million
      • 3 to 5 years
    3. Bank construction loan with take out at certificate of occupancy
      • Recourse
      • Up to 75% loan to cost
      • 225 to 400 basis points floating over 30-day LIBOR
      • 12 to 18 month term or at certificate of occupancy
      • $3 to $15 Million
  6. Take out loan at certificate of occupancy
    • Recourse - negotiated burnoff possible
    • LTV not to exceed the lower of 70% of costs or updated appraisal
    • 15 to 25 year term - fully amortizing
    • Rates: 3, 5, 10 year fixed rates over swaps or floating rates over 30-day LIBOR
    • Primary to tertiary markets
    • Limited service or extended stay
  7. Portfolio loans to unlock equity to buy other properties
    • Non-recourse
    • Up to 75% loan to value
    • 2 to 5 year term
    • Floating rates
    • Primary to tertiary markets
    • $18 million minimum portfolio
    • Conversion to permanent loan per property is available
    • No prepayment penalty to sell properties from the pool
    • Maximum flexibility
    • Owners and operators with significant experience
  8. Mezzanine loans
    • Non-recourse (assignment of partnership interests)
    • Advance rate up to a maximum LTV of 90%
    • 2 to 7 year term
    • $1 to $20 million
    • Target returns
  9. Potential equity source introductions
    • Equity participation up to 80% of equity
    • Financially strong and experienced owner operators
Sign up Now!
Get the latest information on loan programs plus expert commentary on current issues in our monthly newsletter.