New England Hotel Loan Closes

Can you picture the changing leaves at a picturesque New England hotel, one that you now own?

Our clients, one of whom already owned a New England hotel, had their eyes on a nearby property. When it finally came on the market, they jumped at the chance to purchase. They had a vision to dominate the local market and to use their management skills to successfully add a second hotel to their portfolio.

The new hotel is located just outside a very popular state park and is situated in a beautiful mountain setting. The tourists who purchase hotel rooms are avid hiker and skiers, as well as leaf-peepers, those who come to see the fall foliage.

Ryan Dumas, Senior Associate was very pleased to close this loan quickly and smoothly. “My clients really know this area well. Even more importantly, they had done their homework on this specific New England Hotel. They knew what they could do to become more profitable. They have a very workable vision to increase the revenue of this hotel right away.”

The GRP Capital team and the lender worked quickly to underwrite this loan. The result was that in under 30 days, the borrowers went from signing with a lender to having a commitment letter in their hands.

FAQs on Funding Independent Properties:

• Why is it harder to finance my independent hotel? Many lenders are skittish about hospitality loans in general. Independent hotels have to especially prove themselves to lenders. The owners have to demonstrate good traffic to booking sites as well as solid hotel statistics. Our team worked closely with the lenders, regarding the loan above. We showed them occupancy taxes and hotel statistics on the current property. In addition, our partners shared their success with a nearby independent property.

• What can I do if I want to eventually refinance or sell my independent hotel? Keep really good records. Make sure you have monthly financial statements. And be sure that your front desk system allows you to create meaningful hotel statistics. The statistics should include occupancy, ADR and ReVPar. You might even want to enroll in STR reporting, just so you have information about your property’s performance compared to the marketplace. This is less useful in isolated settings.

• Are there advantages in being an independent hotel?  Franchise fees can be expensive. In addition, franchise-required PIP (Property Improvement Plans) can also be time-consuming. Remaining independent can save you money. However, hotel owners have to balance the cost savings with the loss of traffic and marketing that many franchises provide. Independent owner operators must be dialed in to their online presence and constantly tweak their rates compared to the competition.

Why Choose GRP Capital?

Our GRP Capital team specializes in crafting financing solutions tailored to each client’s unique goals.

Whether you’re purchasing, refinancing, or building from the ground up, our extensive network of lenders ensures you’ll find funding that aligns with your goals and cash flow needs.

Here’s what sets us apart:

• We save you time by researching and identifying the best funding options for your project.
• Our expertise spans various loan products—including SBA loans, bridge loans, and conventional financing—so you can navigate even the most complex transactions confidently.
• Beyond lending, we provide strategic guidance on operational decisions that drive long-term business success.