Hotel or Motel

$150K to $4 million

1. Maximum LTV 60% - 65% (see below) based upon the current or prospective market value of the subject property. Purchase and Rate and Term Refinance. No ground leases.

Cash out for property improvements only.

“Excellent” Hotel “

5 Yr- Fixed  call for pricing

Prime Quarterly Adj 6.00%

─ Up to 65% LTV

─ Property built within the last 10 years

─ Flagged or Boutique in resort area

─ Limited Service

─ Interior Corridor

─ 125 units or less

─ DSCR > 1.25x

1. The borrower is required to make an equity injection equal to a minimum 20% of project costs or appraised value, whichever is less (15% equity permitted if done with SBA 504 program).

2. If the motel is proposed or a start-up, the borrower needs to have the ability to cover at least 50% of the new combined debt service.

3. The borrowers are required to have prior motel management experience.

4. The land shall be held in fee simple interest.

5. All FF&E must be included as part of the collateral with a UCC-1 first lien position.

6.minimum DSC of 1.25x

1. consider and evaluate existing motel properties with acceptable debt service coverage of the proposed debt with consistent or improving trends.

2.motel properties that are part of a regional or national franchise.

3.avoid motel properties that:

a. are greater than 20 years old without major renovations or have outdated exterior corridors

b. have a high number of units (approx. 100+) with a low ADR and average occupancy (i.e. < 40%)

c. have 10% or more of the rooms that are non-rentable