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Hotel lending is back - with reservations; bankers don't instantly hang up the phone when they hear the word "hotel" anymore. (includes related article on Branson, Missouri, hotel boom)
- Article from:
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ABA Banking Journal
- Article date:
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November 1, 1994
- Author:
- Cocheo, Steve
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Copyright informationCOPYRIGHT 1994 Simmons-Boardman Publishing Corporation. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Banks are once again willing to finance hotels ventures but only for those who are experienced in the hotel business. However, hotel construction loans are still difficult to obtain. The hotel industry views this as good news because during the 1980's, banks wanted nothing to do with hotel loans. Too often the banks ended up becoming hotel landlords. Hotel values increased in 1993 by an average of 15%, according to Hospitality Valuation Services Inc.
Banks are dipping their toes back into the hotel-lending business. But inexperienced owners and operators need not apply. Banks are interested in financing people who have proven track records. Financing for construction of new hotels ...