Tag Archives: independent hotel

New Hampshire Franconia near Parker's Motel

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.
Florida hotel financing showing random pier

Florida Hotel Financing

At GRP Capital, we know Florida hotel financing. In fact, we specialize in helping businesses thrive in the dynamic Florida hospitality market. While we are a national company with a track record of closing loans across the United States, our expertise in Florida’s hospitality sector sets us apart. We understand the unique nuances of this diverse market and are proud to support entrepreneurs pursuing success in Florida’s hospitality industry.

Recently, our client came to us, needing to refinance his independent hotel loan. His property was in the economy tier and the location was not in one of the highest density tourist areas. These Florida hospitality financing projects can be challenging to match up with lenders. But our team worked hard to place and close the loan.

Rick Patel, GRP Capital President, reflected on this loan and GRP Capital’s deep roots in the Florida hospitality marketplace.

“Our team has closed hundreds of Florida hospitality loans, making us a leader in the Florida hotel financing industry. Lenders acknowledge our expertise and turn to us, especially when financing atypical properties. This particular client wanted to move away from a seller note, as he wanted a traditional banking relationship. This is not unusual: seller notes and non-traditional lenders have their use. However, many clients want to migrate from a personal relationship with a lender. This property, although profitable, was independent and off the beaten path. We pursued financing with a lender who knew our team well and was willing to take on a slightly riskier loan.”

Florida Hotel Loan Basics:

• Florida is many markets. Florida is a large, populous state. As a result, the Florida hotel financing marketplace is varied. Some lenders prefer coastal properties, while others focus on inland or independent businesses. Understanding these preferences is crucial for securing financing.

• Insurance Requires Planning  The insurance landscape in Florida can be challenging. Many lenders require wind coverage, which can be costly. Collaborate with a trusted insurance agent. Obtain accurate quotes and ensure that your business plan accounts for all insurance costs.

• Seasonality Matters:  Florida properties often experience pronounced high and low seasons. Some hotels rely on large group events during slower periods. Research your property’s market drivers, such as major clients or recurrent events to develop a realistic revenue strategy.

Our GRP Capital team specializes in finding tailored financing solutions for every project.

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 how we add value:

  • We save you time by researching and identifying the best funding options for your unique project.
  • Our expertise spans various loan products—including SBA loans, bridge loans, and conventional financing—so you can navigate complex transactions confidently.
  • We provide guidance not only on lending but also on operational and strategic decisions that impact your business success.

If you’re considering becoming a first-time or repeat hotel owner in Florida or beyond, let’s discuss how we can help you achieve your business goals.

State Flag of Florida; we specialize in Florida hospitality

Capitalizing on Florida Hospitality with GRP Capital

At GRP Capital, we specialize in helping businesses thrive in the dynamic Florida hospitality market. While we are a national company with a track record of closing loans across the United States, our expertise in Florida’s hospitality sector sets us apart. We understand the unique nuances of this diverse market and are proud to support entrepreneurs pursuing success in Florida’s booming hospitality industry.

Recently, we had the privilege of assisting a client who was ready to make his mark in the Florida hospitality scene. With prior experience managing multi-family residential properties up north, he sought to transition into hotel ownership in Florida. His goal? To combine his operational expertise with his love for the Sunshine State.

Krishan Patel, GRP Capital Managing Director, reflected on the partnership:

“We love working with clients who bring strong skills from other industries and are eager to apply them to new ventures. This client was organized, well-capitalized, and determined. He had done his homework and was ready to embrace the challenges of entering a new business.”

The GRP Capital team guided him through the complexities of securing a hospitality loan. These included connecting him with a lender and a network of other professionals like surveyors and title officers was also helpful. Today he is successfully managing his independent East Coast hotel, just in time to profit from Florida’s high season.

Florida Hospitality Basics:

• Florida is many markets. Florida is a large, populous state. As a result, the marketplace is varied. Some lenders prefer coastal properties, while others focus on inland or independent businesses. Understanding these preferences is crucial for securing financing.

• Insurance Requires Planning  The insurance landscape in Florida can be challenging. Many lenders require wind coverage, which can be costly. Collaborate with a trusted insurance agent. Obtain accurate quotes and ensure that your business plan accounts for all insurance costs.

• Seasonality Matters:  Florida properties often experience pronounced high and low seasons. Some hotels rely on large group events during slower periods. Research your property’s market drivers, such as major clients or recurrent events to develop a realistic revenue strategy.

Our GRP Capital team specializes in finding tailored financing solutions for every project.

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 how we add value:

  • We save you time by researching and identifying the best funding options for your unique project.
  • Our expertise spans various loan products—including SBA loans, bridge loans, and conventional financing—so you can navigate complex transactions confidently.
  • We provide guidance not only on lending but also on operational and strategic decisions that impact your business success.

If you’re considering becoming a first-time or repeat hotel owner in Florida or beyond, let’s discuss how we can help you achieve your business goals.

Georgia hotel courtyard in Marietta

Georgia Hotel Owners Secure Triple Success!

Our clients, Georgia hotel owners of three independent properties, achieved an impressive trifecta by closing three loans all within 36 days of each other. Working closely with our entire team, they refinanced two loans and closed a new one, freeing up SBA eligibility, and unlocking new opportunities.

The outcome was impressive: two refinanced conventional loans and the successful purchase of a new Georgia hotel. Additionally, they were able to restructure their ownership simultaneously.

Senior Associate Ryan Dumas expressed his enthusiasm for the project, stating:

My clients possess a deep knowledge of the Georgia hotel market. I’m thrilled that we matched them with a lender who shares their vision for independent hotels. The lender’s flexibility in incorporating all three properties into the deal was key. Because of this, the clients’ loans have extremely favorable rates and the most stable financing available.

What is SBA Eligibility and How Did it Affect These Georgia Hotels?

  • The Small Business Association (SBA) has multiple loan programs and guarantees. They each have their own eligibility standards.
  • This Georgia hotel took advantage of the SBA 7(a) program. There are also 504 loans and subsets of those which include Green loans.
  • SBA 7(a) loans have an upper limit, typically $5,000,000.
  • SBA also limits the amount of SBA debt each guarantor can have. In this instance, moving other loans out of the SBA program freed up eligibility. This debt load does not include prior EIDL’s (Economic Injury Disaster Loans).

Is your project a good fit for an SBA loan or combining an SBA loan with other loan types?

  • What is the size of the loan or loans you are needing?
  • Who will be guaranteeing your loans?
  • Do the guarantors have other SBA debt? If so, how much?
  • What interest rates and terms do you have on loans you are wanting to finance?
  • What interest rates and terms match your budgeting needs and your business plans?

Contact our team if you are considering SBA funding or questioning your eligibility. We can help you figure out the right mix of loan types for all of your business financing needs.

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, purchase or engage in construction, 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.