How to Obtain Financing for Existing Hotel
Hello Everyone,
I am interested in purchasing a limited service hotel that I found through a real estate broker, but I am not sure what is the right way to obtain financing. I have reviewed the P&L and the property has had performed very well for the past 5 years. The revenue has been around $725,000/year for the past three years and the EBITDA for the past three years has been consistent at around $200,000/year. Also it is located in a strong market with population of around 80k.
The asking price for property is $1,600,000. I have enough down payment for up to 30% but would like to not put more than 25% down payment. I have never personally owned any hotels before but I have worked at hotels before as desk clerk and manager.
So my question is how likely will it be for me to be able to obtain financing for this property. And what is the best way I should go about it.
Please feel free to ask any questions if you need additional information.
Thanks for the help.