Commercial Investment Capital Group, Inc.
CAPEX/FF&E FINANCING - HOTEL ONLY PROGRAM
CICG provides CapEx/FF&E financing for:
- Hotel Renovations
- Property Improvement Plans ("PIPs")
- Brand Conversions
- Furniture, Fixtures, and Equipment (FF&E) carve out for new construction project
These loan typically range from $500,000 to $10,000,000 and are amortized over the useful life of the improvements, typically 3-10 years. Our experience and knowledge of the hotel industry enable us to underwrite and close these loans in as little as two days.
CICG is able to thoughtfully structure a CapEx loan to meet the franchisees specific needs and the requirements of their senior mortgage through several loan and capital lease options.
Transaction size: Up to $10,000,000
Use of Proceeds: Up to 100% of cost for the acquisition of FF&E for the development of new hotel properties or the refurbishment or conversion of existing properties to include soft cost and construction related items.
Interest Rate: Fixed rates from 7-10% based on credit review and scope of project.
Typical Terms: 3-10 years based on the useful life of the equipment (typically 5-7 years). Interest-only period of up to 18 months available based on cash flow and stabilization needs.
Recourse: Personal and/or corporate guarantees as applicable.
Debt Service Coverage Ratio (DSCR) Requirements: Minimum 1.25x at stabilization (typically 18-24 months post renovation).
Leverage: Total overall debt on property not to exceed 80% of cost for new construction or 85% of stabilized value for an existing property.
Let my team structure the best terms for your financing needs. Call us today!