Our clients, owners of an independent hotel in western Florida, closed their loan. They previously had a private loan, and were looking for more traditional financing. GRP Capital President Rick Patel worked closely with our clients, who are very organized, hands-on small business owners.
Independent Hotel Ownership:
• Proving revenue and expenses: Independent hotel owners typically do not participate in the Smith Travel Research (STR) reporting. As a result, this third party report is not available to lenders and underwriters. Instead, we at GRP Capital provided other documents that demonstrate the health of the business. These can include financials (which can even be certified if necessary) as well as sales tax reports and business bank statements.
• Strong Management Skills: Our clients are very hands-on. They know their budget and their expenses and can rattle off figures without even going back to the books. That is invaluable during the appraisal and underwriting process, when we are painting a picture of how the hotel functions.
• Solid Marketing Plans: Independent hotel owners have the benefits of being their own bosses without the parameters that franchises set. However, they also do not have the marketing budget that franchises have. It’s important to demonstrate how independent hoteliers are retaining and improving market share. Solid marketing plans are written out, with goals and timelines.
Rick Patel upon closing this loan stated, “I really enjoyed working with these clients. I love seeing a hard-working couple who are really just in need of a little help to kick-start their business to the next level. They benefited from our connections with our lender network and were able to transition to permanent financing.”
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. If you are considering becoming a first-time (or second or third time!) buyer, we can assist you.