This is a famous quote from John F. Kennedy in his inaugural address in 1961.  This quote really does resonate with me and is something that comes to mind when dealing with first time buyers who are buying franchise hotel properties.  In my experience, many first time buyers do not know or are initially timid/fearful to negotiate terms with the franchise.  Many first time buyers are either unaware that negotiating terms is a possibility or they are simply fearful that negotiating may undermine their chances of obtaining franchise approval in a timely fashion.   (more…)

Most of the deals we work on at HBC are franchise properties. There are several well-known franchise chains to choose from in the market.  These include Choice (Quality Inn, Comfort Inn, Econo Lodge, Comfort Suites), Wyndham (Days Inn, Super 8, Travelodge) and IHG (Candlewood Suites and Holiday Inn Express) to name a few.  These franchises all require that a new buyer enter into a new Franchise Agreement for a term of anywhere from 10 – 20 years. (more…)

In a purchase transaction timing is everything.  A vast majority of deals that we work on here at HBC are purchase transactions.  A purchase transaction is based upon a purchase contract between buyer and seller that has very time sensitive deadlines.  The deadlines that are important in a purchase contract are the finance contingency date, which is usually 21-30 days after the contract is originally signed and the closing date, which is customarily 45-60 days from the original signed contract date.   (more…)

At Hotel Business Capital we work on mostly franchise hotels with all the major franchises in the market (some smaller ones as well). We have built a very strong professional network at all of the major hotel franchises. We understand that each franchise has their own unique franchise application and approval process. This knowledge and professional network within the franchises is critical to ensuring that our clients are able to get through their franchise application process to franchise approval in the shortest time possible. (more…)

This is a famous quote from the legendary UCLA Basketball Coach John Wooden. It is a great quote and something we live by at HBC. Most of our clients come to us with the sense of urgency and a bit of anxiety and want to be reassured that their loan will close fast and within the deadlines of their purchase contract. We are very, very keen to the overall process and time deadlines required in terms of a purchase contract such as financing contingencies and overall closing dates. (more…)

As a result of the recession some hoteliers had a very difficult time securing financing and resorted to using seller carry back financing aka Owner Financing OR private money aka bridge loans to acquire properties. In the past these loans were completely eligible for refinance without restrictions through the SBA program as long as the borrower was never over 30 days late on any of the payments of the loan to be refinanced AND the loan to be refinanced is on a balloon term OR the new SBA loan will result in at least a 10% reduction of the monthly payments for the borrower. (more…)