Updated over 7 years ago on . Most recent reply
Down payment & Hotel Development
Hello BP World- I'm building a franchised hotel and am currently wondering what people that are in the hotel industry usually use as a down payment. 25% down? 20% down? My bank that I'm going with will let us go forward with having 20% down (which is 800k FYI). And I found a local gap lender who will borrow us 150k at 3.25% interest to assist with the down payment. I obviously know the pros/cons of having higher debt so no need to go into those, but I'm just wondering what other hotel investors are doing. It's in a smaller market, but limited competition so the feasibility study that was conducted came out good along with the pro-forma. I could just use some insight as I'm almost there raising all the money needed from private investors. Thanks!