Hotel/Hospitality Advisory and Capital Markets
In commercial real estate lending, hospitality and hotel finance proposals are an often-overlooked segment, grouped into “special purpose property” bucket at major financial institutions, and overlooked by relationship managers who don’t take the time to understand the complexities of this profitable and growing segment of the market.
The R&D Advisory Group team has a specialized product team devoted to helping those in the hospitality and hotel industry. This team provides a full scope of services for business owners in this space, helping them simplify proposal details for debt and equity partners so they better understand the opportunity and, in turn, feel comfortable with the deal. We do this by providing the following industry-specific capital market services:
• Business Plan Development/Feasibility Studies
• Projections (PIP and Post-PIP/stabilization)
• Bank Underwriting
• CMBS Underwriting
• Cashflow Waterfall Modeling
• PPM Writing
• Debt/Equity Placement
Our team has supported and executed transactions with the largest global hotel brand, including IHG, Hilton, Hyatt, Marriott, and Wyndham. We have worked across all hotel classifications, from economy to midscale, to luxury and upscale. We have worked on deals and loans for ground-up / new build construction, acquisitions and completion of property improvement plans (PIPs), repositioning, and reflag transactions. Our hospitality debt / lender placements options include community banks, SBA/USDAs, CMBSs, life companies, and bridge/non-banks. Our team has successfully closed transactions with full recourse, limited recourse and non-recourse lenders,and we have loan programs with up to 30-year amortizations available. Recent victories include the successful funding of the largest leverage CMBS transaction to close on a hotel property post-pandemic (70% LTV non-recourse) and another flagged hotel loan which we closed in just over 30 days, from application to closing.
Our in-house expertise in underwriting for the hospitality asset class has opened many doors for R&D Advisory Group’s hotel industry clients. Just as it is these client’s goal to provide guests with premier, first-class service and hospitality, it is our goal to provide the same back to them through our prime hospitality product offerings.
