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Buying a Hotel? Financing a Hotel? Ten Things Every Borrower Should Know Part 1
By the JMBM Global Hospitality Group®
Buying hotels is in vogue right now. But financing hotel purchases has some twists every borrower should understand. The industry fundamentals continue to go from good to better, and values are increasingly favorable compared to alternative investments. Many think that this is the time to jump in, before it is too late.
Most hotel buyers will want financing. Some of the big REITs or other cash rich players will buy for all cash and then find financing at their leisure. That gives them an advantage in bidding on hot properties. But most buyers will want financing to pay for their acquisition.
Either way, there are some things your mother may not have told you, but as a buyer (and a borrower) in a hotel purchase, you really should know these 10 things that my partner, hotel lawyer Jeffrey Steiner, lays out for us in his article.
Because of the length of this article, it is presented in 2 parts. Here is part 1.
Buying a hotel and financing a hotel purchase
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