Hotel Financing In Nashville

Many lenders today are wary of hotel deals because many believe the industry has peaked, which makes it difficult for borrowers who want to buy or refinance hotel properties. There are still some great deals available. If one knows where to look, hotel financing in Nashville is still accessible. If a hotelier needs a loan, they have the Small Business Administration and the Department of Agriculture as options. These organizations can also present some noteworthy opportunities for hoteliers. At Proactive Lending, as experienced lenders, we convince them that these SBA loans are certainly the best and most cost-effective solution to finance their hotel. Here’s everything you need to know:

The Thriving Nashville Hotel Market

According to recent statistics, Nashville’s hotel industry is doing better than almost any other city in the nation in recovering from the pandemic. But some obstacles and problems might stop the momentum. In Music City, hotel revenue from leisure travel was projected to increase by 30.8% from pre-pandemic, 2019 levels by the end of 2022, bringing in $273,075,854. 

$88,374,749 in hotel revenue from business travel is anticipated to increase by 9.2%. There are currently 2,544 hotel rooms under construction that should be finished by the end of 2024. We still have more room to grow as a city. There are 61 properties with 8,904 hotel rooms total in the pipeline for hotels when planning hotel projects are included. Safe to say, the industry is booming and so are the hotel financing needs in Nashville. So what to look for and where?

Hotel Financing Loans in Nashville

Recourse borrowers might find loans from the Small Business Administration appealing. Comparing the SBA 504 program to conventional loans, CMBS, and debt funds, it offers much higher leverage and a very attractive cost from a rate perspective. A loan that enables you to carry out a business plan like a [property improvement plan] or some [capital expenditures] upon acquisition is what the majority of our borrowers trade in exchange for super-high leverage [and] low-cost hotel financing in Nashville. 

A notable difference from the conventional model of bridge debt for acquisitions and permanent debt for other purposes is that an SBA loan could be used for ground-up construction, an acquisition with CapEx, or refinances. The SBA is “fairly generous” when it comes to what they define as eligible costs, which include the cost of the land, hard costs, and some of the closing costs for the borrower. The borrower only needs to contribute 15% equity against those total costs because we are advancing on a total pie that includes all project-related costs.

Proactive Lending Group Offers Loan for Hotel Business Financing in Memphis

Proactive Lending Group specializes in all aspects of hotel financing in Nashville for investors in commercial real estate. We comprehend not only the financing specifics for the hospitality industry but also the requirements and worries of investors in commercial real estate. The Proactive Lending Group is pleased to provide various innovative hotel financing options. 

For those who are unfamiliar, the most popular types of hotel financing are typically offered in various ways, including conventional commercial bank loans, SBA 7(a) loans, SBA 504 loans, and USDA B&I loans. We do, however, have additional choices and channels for obtaining commercial hotel financing loans in Nashville. Call us if you’d like to speak with a knowledgeable lender.

Nashville hotel financing for commercial property investors is something that we at Proactive Lending Group specialize in, from beginning to end. We not only understand the nuts and bolts of hospitality financing, but also the needs and concerns of commercial real estate investors.

Pro-Active Lending Group is proud to offer a number of creative solutions for hotel financing. For those unfamiliar, the most common kinds of hotel inancing are generally available in various forms, including conventional commercial bank loans, SBA 7(a) loans, SBA 504 loans, and USDA B&I loans. However, we have other options and avenues to secure commercial hospitality financing … to speak with an experience lender, simply pick up the phone and give us a call today!

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