Scientific Capital arranges 4.7 million loan for the acquisition of the Holiday Inn Express

NEWPORT BEACH, Calif. - Dec. 5, 2016 - PRLog -- Conventional hotel loans at higher Loan to Value are more difficult to arrange mainly because unlike pre-2009 era the national lenders who would directly lend on hotel assets nationwide are either no longer in business or just do not lend on hotels, hence leaving us with the regional lenders to fund these conventional hotel loans. Since the appetite for the hospitality assets in the secondary market is anemic at best, the regional lenders have to hold these hotel loans on their books and due to regulations, they can only portfolio a limited volume of special-use assets such as hotels. Many hoteliers contact their local banks only to realize that the capacity of these banks for hotel loans is full and those banks cannot lend on hotels until one of their hotel loans is paid off. This is where Scientific Capital makes significant contribution to our clients, we match the loans with our regional lenders that are having capacity for new hotel loans.

This loan was structured at 80% Loan to Value as a five-year fixed loan fully amortized for 20 years and resetting every five years at starting rate of 3.85%. Since a syndicated partnership was acquiring this hotel, we were able to negotiate a limited guarantee for each partner. We also negotiated a reduced lender point of a quarter of a point reducing the cost for our client. The loan also includes nearly 1 million of PIP (Propery Improvement Plan) required by IHG Formula Blue design specifications. The PIP loan will be interest-only for a year once the disbursement begins.

Scientific Capital Group, Inc. (www.scicap.com) is a hotel financing advisory and brokerage company established in 2003 in Irvine, California offering services throughout the 50 states. For more information, please contact Ramin Mostaan at (949) 477-5000 or email at ramin@scicap.com.