GRP Capital was proud to close the refinance of an independent hotel in North Carolina.
GRP Capital President Rick Patel and our entire team worked with this small business owner to secure a conventional loan at competitive rates. This loan allowed our client to have improved cash flow with stable financing.
Our team worked closely with the client, his family members who helped with accounting and even his previous lender to obtain all of the documents needed to close the loan. Rick Patel remarked, “This client is our bread and butter: a small businessman who is running an independent hotel. We worked hard to demonstrate the revenue potential of the hotel. In addition, we guided the client and his accountant on coding and categorization, so that his financial reporting more closely matched standard hospitality accounting reports. I really believe in supporting the client as a business person and not just as a borrower. We want our clients to be stronger entrepreneurs at the end of a closing, and not just the recipient of a new loan.”
Unique Challenges of Independent Hotels:
• Marketing the Property. Independent hotel operators have tremendous freedom in marketing their property. However, they also bear all of the costs for creation and implementation of marketing plans.
• Comparing Yourself to other competitors in the marketplace: Most independent hotels do not participate in STR reporting. As a result, it can can be difficult to ascertain how w well their property is doing. Instead, independent hoteliers have to constantly monitor their pricing and compare it to their competitors.
Our GRP Capital team specializes in finding the right lender for each project. We save our clients time and money, as we research the best choices for their funding sources. Our experience allows our clients to find funding that is project-appropriate and will allow for sufficient cash flow. Whether you are looking to refinance or purchase, we would love to discuss your business plans with you. If you are considering becoming a first-time (or second or third time!) buyer, we can assist you.