Transaction size: Up to $10,000,000
Use of Proceeds: Up to 100% of cost for the acquisition of FF&E for the development of new hotel properties or the refurbishment or conversion of existing properties to include soft cost and construction related items.
Interest Rate: Fixed rates from 7-10% based on credit review and scope of project.
Typical Terms: 3-10 years based on the useful life of the equipment (typically 5-7 years). Interest-only period of up to 18 months available based on cash flow and stabilization needs.
Recourse: Personal and/or corporate guarantees as applicable.
Debt Service Coverage Ratio (DSCR) Requirements: Minimum 1.25x at stabilization (typically 18-24 months post renovation).
Leverage: Total overall debt on property not to exceed 80% of cost for new construction or 85% of stabilized value for an existing property.