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)