Property Type – Flagged and Non-Flagged, Full and Limited Service Hotels.
Loan Size - $5,000,000 or greater
Security – First mortgage on the Fee Simple Interest. Leaseholds will be considered on a case by case basis.
Loan Terms – 5, 7, or 10 (15-year fully amortizing)
Amortization – Up to 30 year amortization
Debt Service Coverage Ratio – Minimum DCSR 1.30x
Borrower – Generally, must be a bankruptcy remote, single purpose entity. Non-recourse to Borrower and Key Principals except for standard carve-outs including fraud, misapplication of funds, environmental and voluntary bankruptcy.
Maximum Loan to Value – 75%
Loan Escrows – Taxes and Insurance and FF&E Reserves. Seasonality reserves may be required.
Reserves at Closing – The Borrower shall establish a deferred maintenance reserve account at closing equal to 125% of required deferred maintenance repairs.