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Eligible Property Types |
Flagged, limited hotels with greater
than 50 rooms. Full Service hotels with greater than 100
rooms. |
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Loan
Types |
10 year fixed rate, non-recourse, balloon loans
with amortization schedules up to 25 years; 7 year terms considered on a
base-by-base basis with a pricing adjustment. |
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Security |
First mortgages secured by existing
flagged limited service hotels on fee simple land. |
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Principal Amount
Range |
$2 million and
higher. |
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Interest
Rate |
Pricing based on 10 year T-Bill and spread on a deal by deal basis. |
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Debt Service
Coverage |
Minimum of 1.50 times Full Service;
1.60 times Limited Service depending upon property type, age, physical
condition, location and market condition. Full service must exceed
1.10 times excluding net food and beverage income. |
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Loan to Value
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Up to 70% Full Service, 65% Limited
Service |
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Prepayment
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Defeasance |
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Secondary
Financing |
Prohibited; may
be permitted under certain limited conditions on a case-by-case
basis |
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Application Fee
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$15,000 non-refundable
Inspection/Loan Processing Fee payable to Lender with the Loan
Application. |
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