Category: Hospitality Lending

Airbnb has rocked the hotel industry in recent years—and it shows no signs of slowing down. Earlier this month, the home-sharing platform announced a new service, called “Airbnb Plus,” that aggregates higher-end accommodations as a way of competing with more traditional hotels.

A look at the unique challenges hotel developers face when building with modular construction, and how private lenders can help overcome those obstacles

“These tax cuts could generate more than $131.7 billion in economic activity for hotels and related industries over the next 10 years.”

The STAR report is one of the hospitality industry’s best tools. It is used by appraisers, lenders, current and would-be hotel owners, and investors to make assessments in both inclining and declining hospitality markets.

Hotel construction loans can be extremely lucrative, but their profitability comes with substantial risk. These projects, which can take up to 24 months to complete, have many variables and moving parts. Lenders need to be meticulous in researching the project and involved in the process from start to finish.

In recent years losses on non-performing hotel loans have made many lenders gun-shy. They see hotels as risky and believe assessing the business is complicated. But to sweep away in one broad stroke an entire segment of the real estate market means these lenders are missing out on potentially great opportunities.