Performance Capital Franchise Finance Programs

Hospitality Franchise Financing Programs for Major Chain (Flag) Hotels and Motels

We provide financing for new hotels and refinancing of existing facilities.

New Hotel Financing

 
Loan Purpose

Up to 70% turnkey financing for new hotel construction costs, including land, building, improvements, furniture, fixtures and equipment, and third party soft costs.  Hotel must be limited service and carry a nationally franchised name.

Loan Amount

Minimum of $1 million per property.  Funding will take place upon receipt of Certificate of Occupancy.

Security

First Deed of Trust on hotel land, building, and improvements, and first security interest in all furniture, fixtures, and equipment.  Personal guarantees are required of all operating partners, shareholders and/or related entities.

Terms
Up to 10 years based on a 20-year amortization
Interest Rates

Our rates are based on a spread over 10-year Interest Rate Swaps for fixed rate loans, or a spread over 30-day LIBOR for floating rate loans.  Rates and payments are set at loan closing.

Loan Fees
0.5 % due on acceptance of any loan commitment, 1% due at loan closing.
Deposit

Refundable 1% deposit due on acceptance of loan proposal. 

Requirments

Experienced hotel owners/developers with strong demonstrated hotel management capability.  Existing franchisees (minimum 2 years experience) with a minimum of 2 nationally franchised hotels in operation (for at least 2 years).  Excellent property locations, visibility, accessibility, and positive economic demand generators.  Proposed debt service coverage ratio: minimum 1.30:1 after the third full year of operations.  Meets all qualifications of franchisor.  MAI appraisal, plus market analysis data as provided to franchisor.

 
   
Hotel Refinance Program
 
Loan Purpose

Up to 75% of appraised value for refinancing or acquiring existing hotel properties including land, building, improvements, furniture, fixtures and equipment. Hotel must be limited service and carry a nationally franchised name.

Loan Amount

Minimum $1,000,000 per property.

Security

First Deed of Trust on land, building, and improvements, and first security interest in all furniture, fixture, and equipment. Property must be 15 years old or newer. Guarantees of all operating partners, shareholders and/or related business entities may be required.

Terms
Loan terms up to 15 years. Amortization up to 20 years. Terms will be dependent on the age(s) of the property/properties.
Interest Rates

Our rates are based on a spread over 10-year Interest Rate Swaps for fixed rate loans, or a spread over 30-day LIBOR for floating rate loans. Rates and payments are set at loan closing.

Loan Fees
1% due at loan closing.
Deposit

Refundable 1% deposit due on acceptance of loan proposal.

Requirments

Experienced hoteliers with strong demonstrated hotel management capability. Existing franchisees (minimum 2 years experience) with a minimum of 2 franchise hotels in operation (for at least 2 years). Excellent property location, visibility, accessibility, and positive economic demand generators. Historic & proposed debt service coverage ratio: minimum 1.30:1. Meets all qualifications under respective franchisor guidelines. Current MAI appraisal may be required.