loan amounts | $1,000,000 to $50,000,000 |
eligible property types | Limited Service National Franchise Hotels
Examples: Days Inn (Choice), Super 8 (Cendant), Fairfield Inn (Marriott), Hilton Garden Inn (Hilton), Country Inn & Suites (Carlson)
**Property ADR and Occupancy must be performing at or above STR Comp Set |
ineligible property types | Bed & Breakfast properties, non-flagged properties (some major tourist destinations are acceptable) |
loan terms | Fixed Rate Terms: 5, 10 yrs; Amortization 25 yrs |
max ltv | 75% in most markets; 65% in smaller/tertiary markets CLTV - no seller or subordinate financing allowed |
Min dscr | 1.30x |
max occupancy | Maximum underwritten occupancy not to exceed 75% |
prepayment penalties | Typically Declining Step-Down; Yield Maintenance available |
recourse | All loans are typically full recourse; non-recourse available at lower LTV |
rate lock | 60-day rate lock available |
tax & insurance escrows | Not required |
assumability | Loans are typically assumable subject to lender approval; subject to a 1.0% assumption fee |
msa / markets | Nationwide. MSA requirements are typically 20,000 population within a 25 mile radius |
borrower characteristics | Net worth: typically equal to or greater than the loan amount
Liquidity: 3-6 months post-closing liquidity (including 1031 accommodator acct) |
min. fico | Typically 660 or above; lower scores may be acceptable based on mitigants |
reserves | Franchise Fee: No less than 4%-6% of rooms revenue
Management Fee: No less than 4%-6% of gross revenue
FF&E Reserve: No less than 4%-6% of rooms revenue |
| |
