Hotel Financing Programs

NEW PROGRAMS Cambria Suites Development

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

Bridge financing
Long-term financing
Short and medium-term financing
Furniture, fixture & equipment and information technology financing
Construction/mini perm financing
Take out loan
Portfolio loans
Mezzanine loans
Equity source introductions

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

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

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

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

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

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

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

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

Potential equity source introductions
- Equity participation up to 80% of equity
- Financially strong and experienced owner operators