Current Financeable Hotel Deal Parameters
March 2013 - Lenders are utilizing significantly more conservative underwriting standards and deal structures when evaluating the financing of hospitality assets. In the face of double digit RevPAR declines over the 2008-2009 period across all markets and chain scale classes, lender's are reducing leverage and raising in-place minimumm DSCR requirements along with adopting far more conservative deal terms and structures that had eroded over the last decade. Each deal stands on its own merits and enjoys its own unique credit risks and risk mitigants. ARH utilizes a 3 stage process to obtain the optimal financing solution for your hotel property and through this process, frequently obtains more favorable financing then the current market terms as reflected in the Current Financeable Hotel Deal Parameters Guide.
ARH's team will work with you to first understand the property, its market and your sensitivity to leverage risk, establish what leverage may be required to achieve your investment return objectives and then run a competitive market process to achieve the most economic financing terms. Upon selecting a financing solution, ARH's process does not stop there - we are actively involved throughout the lender's underwriting, due diligence and legal documentation process leveraging the ARH principals' experience as both former bankers and bank counsel to be your advocate.