
Hotel values are down 40% over the past two years. But, prudent buyers and savvy lenders can do well in today's economic environment with SBA's 7(a) lending programs. Government guaranteed loan programs (both SBA and USDA B&I) appear to be one of the few areas where hotel financing is still available, even if it is limited.
When people want to know what hotels to buy, their best chance is finding a property that fits the SBA 7(a) loan box with a maximum loan of $5 million. There's a lot of liquidity in the 7(a) program.
And with the increase in 504 loans to $5.5 million, today's SBA lender can easily finance a $10 million plus project.
Rounding out the discussion will be a segment on trends in conventional financing with specific attention to regulator insight of whether these are business loans or commercial real estate loans.
For the fourth year Anthony Falor will be presenting. His evaluations consistently rank him as our highest rated guest panelist.
In 2009 Anthony Falor stated, "Hospitality financing deals could only be structured with a federal government guaranty." Tune in to hear what has changed in 2012.
We are about to enter a period in 2012 where, because of lack of supply in the market and this pent-up demand that will occur, you will see better returns than in prior years. Values will increase as a result. If lenders are prudent in financing property acquisitions using SBA or USDA loans, they will be rewarded in the future.
Hospitality Financing Webinar Agenda (2:00pm ET-3:15pm ET)
1) What's happening with hospitality financing in 2012
2) Current state of the credit box
3) What's happening with Franchises?
4) Suggestions for improving, streamlining, or simplifying the process for making these deals
5) Selling Hospitality Loans to the Secondary Market