The hotel business is a great business to get into. Most likely, you will need hotel financing to start your business. A commercial hotel loan can help you to pay for the building, renovations, décor, and advertising costs, in addition to other costs that you have. The same is true if you want to own a motel.
Motel and hotel mortgage lenders can help you succeed by loaning you the money you need to start your business. In almost all cases, this money must be repaid within an agreed upon time frame.
There are a few things that hotel and motel financing companies look for when they are considering whether to loan the money:
- High credit scores. This shows companies that you are able to use money wisely.
- A good business plan. A hotel or motel financing company will want to know how you plan to build and run your business and whether it is likely to be successful.
- A strong business team. Having experienced leaders running your business increases your chances of success.
Action Steps
The best contacts and resources to help you get it done
Learn your credit score before applying for a commercial hotel loan
Your credit score plays an important role in whether hotel mortgage lenders want to do business with you. It is important that you have excellent credit when applying for any loan.
I recommend: You can get a free copy of your credit report through
AnnualCreditReport.com, which lists your score from all three of the major credit bureaus.
FreeCreditReport.com is another website that offers this service.
Have a professional business plan
Hotel financing companies require you to provide them with a business plan before they will agree to finance your business. Make sure that yours looks professional.
I recommend: You can find an excellent guide to creating your own business plan at
Work.com. A software program, such as the one provided by
Business Plan Pro can also help you to write your own. When writing is not your strong point, you can have a custom business plan written for you by companies like
MasterPlans.
Get a loan from hotel and motel financing specialists
With a good credit score and a solid business plan, you will feel confident in contacting hotel and motel lenders. Make sure to choose a company that has a good reputation.
I recommend: The National Republic Bank of Chicago specializes in hotel financing as well as motel loans.
Bank of America is a national bank that offers many different types of loans for small businesses.
Tips & Tactics
Helpful advice for making the most of this Guide
- It will be easier to get motel loans if you find the property first. Motel lenders will be better able to assess the chance for success when they can see the property.
- If the first hotel finance company you ask turns you down, do not be afraid to look into other companies. Refine your presentation and try again.
- If you have a bad credit score, try to improve it before you apply for hotel and motel financing. Get rid of debt and always pay your bills on time.
The official source of Hotel and Motel Financing is
the Hotel and Motel Financing page at Business.com
Related Resources from Business.com
Comments
Is any content on this page inappropriate? To let us know, please 
