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Introduction: Turning Hotel Ownership Dreams into Reality
The hospitality industry in the USA has been evolving consistently. Global hospitality companies help hospitality entrepreneurs convert their dreams into realities by creating franchise ownership opportunities. However, securing this franchising opportunity is only the first step to realize the hotel dream for most hotel developers and franchise owners like you.
Financing is one of the major hurdles you may need to overcome to fast-track hotel development projects. You, like other hospitality entrepreneurs, may find it challenging to secure traditional hospitality loans due to reasons like long approval cycles, high equity requirements, and complex commercial loan underwriting processes.
To make your project successful, you need to implement robust financial strategies to accelerate project timelines as well as reduce financial strain. To support hotel developers like you, AVANA Companies has partnered with IHG Hotels and Resorts to bring a $250MM Co-Lending Construction Program. As a borrower-friendly financing solution, the AVANA-IHG Construction Program helps you overcome these constraints by providing a viable alternative to conventional financial solutions.
The Challenges of Hotel Financing for Franchise Owners & Developers
Higher Capital Requirements: Banks reduce credit risks by asking hospitality entrepreneurs like you to make higher down payments and provide equity as collateral. These requirements may make it difficult for you to secure loans from banks.
Approval Delays: Traditional lenders often take months to process and approve conventional hospitality loan applications. The lengthy approval cycle may make it challenging for you to accelerate project timelines and delay revenue generation.
Inflexible Financial Solutions: When evaluating conventional loans, lenders consider the borrower’s industry experience as one of the key criteria. Lack of prior experience in the hospitality sector may make it challenging for you to secure flexible and tailored financial solutions.
The AVANA-IHG Advantage: A Smarter Path to Hotel Ownership
What is the AVANA-IHG Construction Program?
AVANA-IHG Construction Program is a co-lending construction program launched through the collaboration between AVANA Company and the InterContinental Hotels Group (IHG). The program helps entrepreneurs build new IHG-branded hotels and standout properties in various American markets.
It creates opportunities for both experienced and new entrepreneurs in the hospitality sector to get robust alternatives to standard financing. At the same time, the borrower-friendly lending program addresses the prevailing financial hurdles in the hotel investment landscape. The co-lending program could help you to secure funding on flexible terms tailored for you.
How does the AVANA-IHG Construction Program Help Franchise Owners & Developers?
Tailored Solutions: This co-lending program aims to offer a borrower-friendly alternative to standard financing. It focuses on providing you with tailored credit solutions on flexible terms.
Faster Approvals: In addition to meeting your financial needs precisely, the program aims to reduce hotel development timelines. by streamlining the approval process and ensuring faster approvals. We do this by following a robust and streamlined underwriting process, which also ensures thorough due diligence to minimize credit risk.
Certainty of Execution: With this program, we give clarity very early on whether your project meets the funding criteria or not. You can be certain of the funding being on its way, once your application is confirmed and you have the right documents in place
Strategic Support: You can complete hotel projects efficiently by getting IHG’s brand support and AVANA’s specialized lending solutions. The program enables you to get funding for leading IHG brands – EVEN Hotels, Avid Hotels, Atwell Suites, and Holiday Inn.
At the same time, you get specialized and tailored financial solutions from an experienced hospitality lender like AVANA, who in turn has partnered with Oaktree Capital to fund the construction and renovation of hotel properties across the USA.
Key Steps to Secure Financing & Build Your Dream Hotel Project
Choosing the Right Franchise Brand
A reputable franchise brand like IHG helps you accomplish several goals – market positioning, financial options, and guest experience. At the same time, you can select from several IHG-branded hotels, including EVEN Hotels, Avid Hotels, Atwell Suites, and Holiday Inn, that have the right market-fit.
Understanding Financial Requirements
Leading brands require you to meet specific criteria like initial investment, franchise fees, and royalty fees. In addition, you must meet the property design, service, and operational requirements set by the franchisor. You can join and leverage this co-lending construction program by meeting predefined requirements set by IHG and AVANA.
Navigating the Loan Approval Process
In addition to a comprehensive business plan, you need to understand key processes like meeting hospitality loan eligibility criteria, submitting the loan application, finalizing lending terms, and utilizing funds for project completion. The AVANA-IHG program enables you to navigate the loan application process and receive funds by getting the required support and assistance.
Financial Planning and Risk Management
You can sustain long-term growth by focusing on a variety of factors – budgeting, expense monitoring, cost control, cash flow management, and KPI tracking. At the same time, you must eliminate potential risks like operational disruption, market downturns, and regulatory changes. AVANA-IHG program helps you ensure long-term success by keeping a contingency plan in place.
Conclusion: Your Hotel, Your Future
To become a successful hotel franchise owner, securing strategic financing is one of the key steps. You must focus on securing tailored loan products on favorable terms. AVANA-IHG Construction Program creates opportunities for you to secure credit that is tailored for you. At the same time, you can launch and scale hotel projects by availing flexible and borrower-friendly solutions.
Want to build your next dream hotel project? Join the AVANA-IHG Construction Program by contacting us.