98666 Resource 78777 78860 1071 1123297495104 1215929022193 Controlled Commercial Financing and Underwriting Commercial Loans on Hotels Commercial Lenders Will Lend Up to 65% to 70% LTV on Hotels <p>Commercial mortgage lenders are hungry for commercial loans on flagged hotels these days.&nbsp; Occupancy levels are historically very high right now because most new hotel construction ended on September 11th.<br /><br />Typically commercial banks today will lend up to 60% of cost to build a new major-flagged hotel.&nbsp; Commercial developers will usually contribute 15% of the total cost and obtain a mezzanine loan for the balance.<br /><br />Commercial banks will make permanent commercial loans on standing flagged hotels up to 65% to 70% of appraised value.<br /><br />When underwriting a loan on a flagged hotel or even older, unflagged motel, here is a great rule of thumb:<br /><br /><span style="FONT-WEIGHT: bold">Hospitality properties typically sell for around <span style="TEXT-DECORATION: underline">three times their gross annual rents</span>.&nbsp; A motel bringing in $1 million a year in revenue will sell for around $3 million.&nbsp; If it is a gorgeous, newer hotel, it might sell for 3.5 times it gross annual income.<br /><br /></span>A disproportionate number of folks from India are in the hospitality business, and a great many of them have the last name of Patel.&nbsp; These folks are usually not related to each other.&nbsp; The word &quot;Patel&quot; simply refers to the state in India where they, or their parents, once lived.&nbsp; Many times&nbsp; their first names are very, very long.&nbsp;&nbsp; Using this custom, I might be called Georgeblackburne California.<br /><br />You can find hundreds of hotel lenders and motel lenders on C-Loans.com.<br /><br /><span style="FONT-WEIGHT: bold"><br /></span><br /><br /></p> 9 application/xml false commercial construction lender commercial construction loan commercial financing commercial loan commercial mortgage commercial real estate loan mezzanine lender mezzanine loan preferred equity C-Loans Commercial Mortgage Lender Databank Find Hundreds of Hotel and Motel Lenders http://www.c-loans.com/onlineapp Mozilla/4.0 (compatible; MSIE 7.0; Windows NT 5.1; .NET CLR 1.1.4322; .NET CLR 2.0.50727) 127.0.0.1 127.0.0.1 johngaudio 216.87.92.57 false true false false true 198508 false false true false false false true 78777 blog blogsite/CLoans/web