LEX Capital Group provides its clients with access to a wide array of fixed and floating-rate financing programs for all hospitality assets, including both franchised and independent motels, hotels and full service resorts. Financing is available for:

• Permanent Loans
• Acquistion
• Refinance
• Construction
• Bridge Loans ( repositioning/construction)
  

For our permanent loans, assets are expected to have been operating at a stabilized level for not less than 12 months. The loan amount is typically constrained by a loan-to-value ratio of not more than 75-80% and a debt service coverage ratio of not less than 1.35. Permanent loans have maturities that vary from 3, 5, 7 and 10 years with amortizations between 20 and 30 years. These loans are generally non-recourse and assumable with lender approval and an acquisition fee.

When considering construction loans, the experience of the developer, as well as the management company and franchise affiliation, will be very important and closely reviewed by the lender.The loan will be constrained at 70% to 75% of cost and will typically have some level of recourse to the developer. Terms are up to 36 months with the ability to extend the term for a fee.

Whether you are looking for a cash take-out, a construction lender or to reposition a property, we have worked with several lenders that offer short-term loans that are structured to allow the asset to be repositioned and reach stabilization. These loans typically have lower performance threshold levels and terms of two to three years.

With extensive experience in hospitality financing, our origination team can help identify the most favorable solution for your next hotel, motel or resort.