Distressed Hotel Solutions

Distressed Hotels

We Provide Access to Preferred Equity for Distressed Hotel Owners ~ Note Sales, Workouts and Restructurings, Transactional Services, Angel Joint-Venture Equity, Distressed Hospitality Equity and Debt Financing in All 50 States

  • Structure:  Preferred Equity on an individual hotel, a portfolio of hotels, or corporate owned hotels
  • Preferred Size:  USD $3.0M to $30.0M+
  • Loan to Value:  up to 75% LTV based on 2019 NOI valuation (80% on select hotels and resorts)
  • Term:  3 to 5 years a with Buy/Sell Clause (on a case-by-case basis, 5 to 10 years)
  • Preferred Rate: 10.0% - 12.0% Accrued until Cash is available
  • Equity Warrant: 20% - 40%
  • Cash Out:  Possible, depends on leverage
  • Uses:  Debt Service; Operational shortfalls; PIP; or other including Cap Ex
  • Close: 45 to 60 days
  • Cost: 2 points (paid by Borrower)