A financing alternative that frees up capital allowing the owner to invest back into the same or different business.
Nevistas and their financing partners are happy to add a new program to their list of viable hotel focused financing options. The latest of which is our hotel sale leaseback program, a real alternative for flagged property owners that wish to inject more cash into the same or different business... the latter of which being more the trend.
Benefits of a hotel sale leaseback program include:
- Immediate improvement of your businesss balance sheet.
- You maintain control of the property.
- Leasing back the property means you can defer a large part of the tax liability.
- A lease allows you to write off the full payment each month. A standard loan only allows you to claim the interest payment.
- You will NOT risk loss of money in equity. With a hotel sale leaseback program you are guaranteed full market value.
- Most importantly, you generate capital that can be immediately invested back into your business or your primary business... use one to grow the other.
Typically, this style of financing attracts flagged hotel owners that want to use the value locked in one property to help grow a primary business. The overall idea is if you have a property that is not inline with your overall strategy or operations, why own it? Take its market value today and invest into the business you want to grow.
A list of general parameters to quality for our hotel sale leaseback program:
- Property must be flagged
- Be a stand-alone or primarily a hotel/motel property.
- Have enough positive cash flow for 1.2 DSCR.
- Appraise at a value higher than debt owed on property.
- Seller must have proven track record in hospitality.
- 15-20 year lease term.
- Seller will have an option to purchase the property back.
- Competitive interest rates
If you wish to learn more about this program, please visit our hotel financing
page and submit the brief financing form. Our partners will be in contact within one business day.
Nevistas financing was officially launched in October of 2008. Their network of hospitality news and real estate websites has put them in a unique position to match principals and brokers with reputable lending sources that get deals done. Logos, product and company names mentioned are the property of their respective owners.
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