Hotel Nationwide Lending Guidelines
Eligible Properties
National Franchised Properties. Will also consider extended-stay and
non-flagged properties on a case by case basis.
Eligible Property Locations
Nationwide. Suburban locations should demonstrate strong demand and
ability to compete at market rates. Require solid market strength as is
determined by, among other factors, RevPar trends, STAR reports, ADR
comps, occupancy / breakeven and trends in population and employment.
Loan Types
Construction, Permanent, Acquisition or Refinance [including stabilization
projects]. Will also consider equity or mezzanine debt components on a
case by case basis.
Loan Size
$1.0MM & Up
Pricing
Based upon the quality of the real estate and the credit strength of the
asset with competitive spreads over LIBOR and Treasury indexes.
Debt Service Coverage Ratio
1.35x minimum on senior CMBS debt. 1.20x+ minimum on conventional or
interim financing. DSCR’s may not apply on subordinated or structured
transactions. Infinity will consider lower DSCR’s for reposition
/stabilization opportunities for borrowers on a case by case basis.
Loan-to-Value
First Position: Up to 80% & Up to 90% CLT V with mezzanine piece.
Loan Term
Up to 30 years
Amortization
30 years or less depending on property and underwriting specifics.
Recourse
All Conduit permanent loans are non-recourse subject to standard
carve-outs. Conventional /interim financing contains full or partial
recourse provisions.
