SERVICE SPOTLIGHT
FLAG HOTELS
Large-brand hotels can be an incredible investment opportunity, but only if you do everything right from the beginning. R&A Financial specializes in flag hotel loans, with lending options between $10 and $150 million, which includes Ground-up Construction. We are dedicated to providing the best service to our clients, so we will work with you one-on-one to customize each piece of your financing solution.
HOTEL FINANCING STRATEGIES
Capital Stack Placement
As a real estate investor, your place in the capital stack can have significant ramifications, particularly if you’re not placed where you need to be. At R&A Financial, we make sure that our clients get favorable placement so that your down payment doesn’t have to be as substantial.
Mezzanine Financing
Another option we can use is mezzanine financing. With this kind of loan, lenders can convert to an equity interest in the hotel in case of default. Mezzanine financing is a combination of both debt and equity financing, which offers a higher rate of return than traditional mortgages. Because of the higher yield, lenders will be more interested in long-term investment, which can strengthen the company overall.
Senior Debt
One option we have is to bring in more senior debt to the capital stack. In this case, more equity remains in the hands of the lender. If the loan defaults, the lender can sell the property to recoup any losses or outstanding balances. By balancing the stack this way, your liability is reduced, but your investment earnings are mitigated as well.
Equity Investors
When it comes to real estate, many investors like to put money into common or preferred equity. While these placements are last on the capital stack (meaning that they get paid after everyone else), the returns can be much higher. More risk, more reward. Because you’re developing a flag hotel with built-in brand value, we can attract more equity investors, thus minimizing your liability.
Joint Venture (JV)
Part of our job is to bring people together to make better investments. In some cases, entering a joint venture with another investor or business can offer more benefits and less risk. We have access to a vast pool of talented people who can provide capital or expertise to assist with your investment.
Explore your options
Contact R&A Financial today to find out more about flag hotel financing. Our consultation services ensure that you find the absolute best loan option for your investment.
No obligation Quote
338 South Rosemead Blvd.
Pasadena, CA. 91107
(714) 782-7066
support@rafinancialgroup.com