Important Things to Consider in Securing a Commercial Loan for Hotel Properties
For businesses or properties used for commercial purposes, a commercial loan can be of great help. Each commercial loan that you need to get implies different sets of requirements. Applying for one commercial loan is different from applying for another commercial loan. For example, if you want to get a commercial loan for a hotel property, it is unlike applying for any commercial loan out there. This article will serve as a basic guide to commercial loans for hotel properties if you are planning to get one.
Again, getting a commercial hotel loan is not as simple as it seems. When you apply for a hotel commercial loan, the risks that are at stake are higher. This is one of the reasons why hotel loans do not fall under the same category as other commercial loans. In terms of business nature, a retail business venture is very much different from a hotel property. The thing about retail business ventures is that they can mean a lot of things like general merchandise but with hotel properties, they immediately entail an inn. That is why applying for a commercial hotel loan is very much different than the other commercial loans that you might have applied before or will be applying for. When it comes to hotel financing, you should be following commercial mortgage requirements that have different provisions most of the time.
There are some things that you have to take into account if you want to apply for a commercial for hotel properties. Basically, in getting hotel financing, you must decide on the kind of corridor you intend for your property Usually, you choose between an exterior corridor or an interior corridor for your hotel property. Make sure that you know what makes the other one different from another as you decide to apply for a commercial hotel property. One of the reasons why you should know them is that each of them has different sets of provisions. From the exterior fascia, you will be able to see the actual doors of the hotel rooms for the exterior corridor type. Apartment-style hotels that you call motor hotels or motels are one example of this kind of hotel property that will let you park your vehicles just in front of your own room as the guest. Interior corridor hotel property, on the other hand, is one where all rooms are placed in one big hotel building where all tenants must share the facilities found inside. The difference with these two hotel property types will be their percentage of gross revenue that the owner gets. If you are going to be getting hotel financing, you should know which is which. It is important that you first speak with the commercial hotel property loan provider to know your options.