Running a hotel business can be an exciting and rewarding venture. There may be times when you simply don’t have the funding you need for various projects or daily operations. Fortunately, you can secure financing for such things, so you do not need to close down a property or miss out on an opportunity due to lack of funds. Below are the basics of hotel financing options that are available to businesses in the industry.
Sharing Space and Costs
One way to make the most of your capital is to share common space with another hotel. This is known as dual branding. Doing this helps to lower construction costs and labor costs for both hotels. By sharing common areas, staff members, and construction costs, each hotel saves money.
If your credit is excellent and your track record is solid, you might qualify for a traditional loan. Unfortunately, the terms that qualify a hotel for such a loan could render the hotel ineligible. However, there are other possibilities worth considering.
Alternative lenders have opened up new choices for hotel financing. A loan from this type of lender may have less rigid terms than one from a conventional lending institution. Getting a loan from an alternative lender may also be a much speedier process than traditional options. This can be critical when you need financing quickly.
If you have tried traditional routes to getting hotel financing and have not been successful, do not despair. Norus Capital can help you to explore different ways to secure funding for your hotel business, such as SBA loans, equipment financing, and franchise financing. Contact us today for more details.