Tag Archives: hospitality loans

Beach seen through a drop of water

Complex South Florida Hotel Loan Closed

Our client partnership group needed a Florida hotel loan. They were ready to purchase an underperforming hotel in South Florida. The hotel showed potential for growth, particularly with our partners’ plans to be hands-on right away. Currently, the hotel was owned by remote partners.

Krishan Patel, Managing Director of GRP Capital stated, “This partnership group consisted of a management team who were ready to enter the Florida market for the first time. The Florida hotel loan marketplace is complex and the lender pool has narrowed. We were able to secure competitive financing, requiring strategic structuring of the partnership. Our guidance was key to ensuring there was SBA eligibility, which is often critical in Florida hotel loans, especially in the mid-scale and economy sectors.”

The entire GRP Capital team worked together on all of the components of this loan. We even made sure one of the partners was able to sign his documents, while traveling on a ship!

Florida Hotel Loan FAQ’s:

• What should I do about insurance while I’m looking for financing? If you’re refinancing, just inform your agent that you’ll need updated insurance certificates. If you are purchasing a new property, start getting insurance quotes ASAP, especially if a lender is requiring flood and/or wind coverage. These extra coverages can take more time to procure. If you don’t have an agent, you can ask the seller if they are satisfied with their insurance agent. That person knows the property already. We also keep an updated list of trusted agents in our database.

• How come my own local bank won’t just loan me the money? This happens a lot! Different lenders have different interests for a variety of loans! We know our lender network well. That means we know who is interested in hospitality loans and who is not. That saves you time and money.

• Why should I consider an SBA loan?:  Small Business Administration (SBA) loans are often the best matches for certain hotel properties. The SBA is willing to guarantee a larger variety of hospitality loans, including economy and mid-scale properties.

• What about Hotel Statistics? The Florida marketplace is diverse with certain areas performing better than others. Accurate hotel statistics, through STR reports, financials and occupancy tax records are critical. These documents provide the fullest picture of the hotel’s revenue. As a result, the lender can feel more comfortable in underwriting and approving the loan.

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 non-recourse loans, 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.

Repeat Client Purchases Maine Hotel

Our client partners had their eyes on a Maine hotel. One of the partners is already experienced in the New England hospitality business. He even recently closed another hotel purchase with GRP Capital. He and his partner thought that this Maine hotel was just what they were after: a stable hotel that could quickly become more profitable.

The new hotel is located in a charming New England town with a nearby college.

Ryan Dumas, Senior Associate was very pleased to close this loan “I know one of the partners really well. He’s honest and a good business person. He has a vision to purchase New England properties, particularly those that can easily become more profitable. His business plan was strong and the lenders believed in the project. The partners have a clear and doable set of steps to increase the revenue of this hotel right away.”

Business Plan Basics and this Maine Hotel:

• Understand your hotel’s seasons as you take action: Many hotels are in locations that have seasonality. High season for a Maine hotel is different than the South Florida hospitality landscape. A strong business plan recognizes any seasonality and has a strategy for both high season and low season. This plan incorporates staffing, marketing and setting rates.

• Really understand the STR report of the property you are buying or refinancing. Smith Travel Reports or STR reporting gives you information not just about the property you are investigating. STR reports also show you that property’s position in the marketplace. You can compare this hotel to others nearby in terms of occupancy and daily rates. This is incredibly useful information for a potential buyer. You can use the STR numbers to set realistic goals and create a business plan that works towards those targets. If the hotel is not a STR subscriber, make sure that hotel statistics are accurate and complete.

• Highlight your previous positive experiences. This hotel owner had experience with underperforming properties. Therefore, the partners could quickly delineate the needed changes which would have an immediate impact on both revenues and expenses. If you have successfully operated this type of business or another business but in this marketplace, indicate that in your business plan. Explain how you have enhanced revenue or minimized surprise expenses in your previous business endeavors.

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.