Our personal advisory approach will make you rest assured that you are getting the best hotel financing solution, which is tailored specifically for your situation.
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HOTEL FINANCING

Ocean Pacific Capital has extensive experience in flag and non-flag hotel and resort financing. At our company we take a personal advisory approach to the financing process so you will work closely with a loan officer who specializes in hotel finance. You can rest assured that by working with us you are getting the best hotel financing solution, which is tailored specifically for your situation.

Hotel, Motel, and Resort financing requires the top notch skills of an experienced commercial loan officer who can bring out the best in the property, highlighting its value added services, and pointing the property toward the future. Our hotel financing specialists have the years of experience it takes to understand exactly what the proprietor expects in handling the financial well-being of his considerable investment.

The cost and availability of capital have an enormous affect on the hospitality industry, with far-reaching implications for property liquidity, values and new supply. Given the importance and recent shortage of financing to the industry you need our experience to find you the best hotel financing solution.

Whether you are developing or acquiring hotel properties, it is critical to consider the possibility that interest rates will be radically changing in the next 24 to 36 months. There are several strategies to help understand these issues when it comes time to consider construction, bridge, and mezzanine financing options. It is the same analysis used by institutional partners with pre-set investment time horizons and IRR preferred returns that compound before anything is ever seen.

In recent years, interest rates spreads have contracted to the narrowest margins in recent history, which means existing hotel and resort properties can be leveraged by as much as 90 percent of a property's value. Still, the time will come when permanent financing must be put in place - even if you replace current financing with another bridge loan, underwriting rules remain relatively constant. Hotel finance is highly complex which is why the utilization of Ocean Pacific Capital's hotel finance experts is key.

Ocean Pacific Capital can provide the best hotel financing for properties worldwide. Loan amounts on hotel loans can range from $500,000 to $1.3 billion. Fixed rates on hotel loans are also available as well as hotel loans with adjustable rates. Debt coverage ratios for hotel loans start at 1.10 and up.

HOTEL PROGRAM PARAMETERS

Loan Term: Loan maturities are normally ten years. Other maturities will be determined based on your specific case.

Loan Amortization: 25 and 30 year amortization

Debt Service Coverage Ratio (DSCR): DSCR of 1.35:1 dependant upon property type, physical condition, age, location and competitiveness of market position

Loan to Value Ratio: Up to 70% with Limited Service or up to 80% with Full Service of MAI appraised value conforming to FIRREA and USAO guidelines and up to 75% with limited service or up to 85% (full service) of loan to acquisition cost (if applicable).

Loan Escrows: The borrower will typically contribute monhtly to an excrow account for real estate taxes and property insurance. The borrower will usually also establish a monthly capital replacement escrow reserve equal to the greater of i. 4 % of gross revenues or II an amount to be determined by DBMC on the basis of an engineering report and DBMC's site inspection. These reserves may be waived or capped depending on your situation.

Please contact us to discuss how you can receive the best hotel financing today at 1-800-595-1474 or fill out a simple form with your project details and we will contact you right away.


Whatever your financing needs,
we will tailor a loan that's right for you.

 
 
 

Wall Street Journal
Commercial News

2/20/17

WSJ.com: Commercial Real Estate

Kroger Co. Gobbles Up Murray's Cheese
The supermarket giant has purchased the famous New York cheese store chain and its Greenwich Village flagship store for an undisclosed amount.

A High Line Plan Emerges in Newark, N.J.
A raised pedestrian bridge is one of the signature features of a 22-acre public-private redevelopment project called Mulberry Commons, recently unveiled by the city of Newark and developers.

Suburban Offices Woo Millennials With Food, Fitness and Fun
Office property owners in New York?s suburbs are working to attract millennial workforces with amenities like restaurants, hiking trails, fitness clubs and natural lighting.

Mumbai's Slums Make Way for Luxury Towers
In Mumbai, the land-starved financial capital of India where millions live in slums, developers are turning to rules that allow them to build upscale towers in exchange for providing housing to slum dwellers.

Mall Owners Rush to Get Out of the Mall Business
A surge in store closures is prompting some of the largest U.S. shopping-center owners to walk away from troubled locations rather than restructure their debts.

Investment Firm Taking Space in N.Y. College
Two Sigma Investments plans to open what it calls a collision lab at Cornell University?s technology campus now rising on Roosevelt Island.

Whole Foods to Open a Lower-Priced '365' Store in Brooklyn
Whole Foods Market plans to bring its lower-priced store chain, 365 by Whole Foods Market, to Brooklyn?s Fort Greene neighborhood.

BRE #:00619059
Charles Elfsten, President
Charles A. Elfsten
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