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Hospitality and Hotel Project Financing

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Abstract image representing secure funding for hotels and resorts and investment capital.

Accelerating Capital Access and Deal Structure

Sourcing and structuring capital is often the longest, most complex phase of hotel development. Submitting incomplete or poorly presented proposals to hotel financing lenders can lead to critical delays, unfavorable terms, or outright rejection. Our hospitality project financing service acts as your financial accelerator. We leverage our deep experience in hotel investment advisory and our extensive network to package a compelling investment narrative, securing competitive funding for hotels and resorts and structuring the debt and equity stack to maximize your return on investment.

Hotel development consultant and architect reviewing blueprints at a construction site.
Consultant reviewing a successful hospitality project financing term sheet with a client.

Our Consulting Approach

1. Financial Readiness Assessment
2. Investment Memorandum Preparation
3. Lender and Investor Sourcing
4. Due Diligence and Closing Management

Results:

Optimized Capital Stack: We secure the most competitive terms, minimizing interest expense and maximizing the Internal Rate of Return (IRR).

Accelerated Time-to-Close: Our preparation and negotiation expertise significantly reduce the time spent in underwriting and due diligence, accelerating project start.

Enhanced Credibility: An IM packaged by our hotel investment advisory team instills confidence in hotel financing lenders, improving the overall attractiveness of the project.

How Consult Folio Enhances Your Project Financing

Streamlining the Path to Securing Hotel Development Capital

Consult Folio functions as your dedicated financial strategist,
ensuring all aspects of hospitality project financing are structured for long-term project success and owner equity protection.
Investment Memorandum Creation

Developing professional, institutionally recognized investment documents essential for attracting hotel financing lenders and equity partners.

Debt Structuring and Negotiation

Advising on the ideal ratio of senior, mezzanine, and preferred equity debt to secure the best funding for hotels and resorts.

Equity Sourcing and Partner Vetting

Identifying and introducing the project to targeted private equity and high-net-worth investors that align with the owner’s goals.

Refinancing and Restructuring

Advising existing owners on optimizing capital structure, loan renegotiation, and securing refinancing under better terms.

Lender Due Diligence Management

Managing the extensive information requests from hotel financing lenders to ensure timely, accurate responses and fast loan processing.

Feasibility Integration

Using the detailed hotel business feasibility report as the core financial evidence to support all funding requests.

Owner's Representative for Closing

Acting as the owner’s representative during the final closing, ensuring all term sheets and agreements match the negotiated commercial terms.

Development Budget Management

Auditing and advising on the total development budget, ensuring financial projections account for all project soft and hard costs.

Four Reasons to Hire an Expert for Project Financing

Why Engage a Hotel Development Consultant for Funding?

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Proven Lender Network Access

Our strong relationships with global and regional hotel financing lenders and equity groups provide immediate access to capital sources you may not otherwise reach, securing competitive quotes quickly.

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Expertise in Deal Structuring

We specialize in structuring complex debt-equity stacks, ensuring the terms of your hospitality project financing protect your equity, minimize liability, and align with your long-term ownership strategy.

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Validation of Financial Viability

Our involvement, backed by the rigorous hotel business feasibility analysis, provides the credibility required by institutional investors, proving the project's profitability and greatly reducing perceived risk.

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Focused on Long-Term Capital Efficiency

We look beyond the initial loan to advise on refinancing and exit strategy implications, ensuring the initial funding for hotels and resorts accelerates your project and maximizes the final Internal Rate of Return.

Frequently Asked Questions for Hotel
Project Financing

How does Consult Folio speed up the hospitality project financing process?

We accelerate the process by ensuring the investment package is institutionally compliant and compelling from day one. This involves translating the hotel business feasibility data into a comprehensive Investment Memorandum (IM) that meets all lender requirements. Our ability to pre-qualify and introduce the project to the right hotel financing lenders in our network bypasses weeks of uncertainty and dramatically reduces the time spent in the initial stages of due diligence.

What types of funding for hotels and resorts can Consult Folio help secure?

We assist clients in securing a full range of funding for hotels and resorts. This includes senior debt (construction and term loans), mezzanine financing, preferred equity, and joint venture equity. As a specialized hotel development consultant, we model the pros and cons of each type of capital, helping the owner select the optimal mix that maximizes returns while minimizing personal liability and capital cost.

What is the importance of a hotel business feasibility study in securing financing?

The hotel business feasibility study is the foundational document for securing hospitality project financing. It provides the independent, data-backed evidence that proves market demand, competitive positioning, and financial viability. Hotel financing lenders will not proceed without a rigorous feasibility report, as it justifies the loan amount and confirms the project's capacity to generate the necessary cash flow to service the debt.

How are your financing services integrated with your Investment Advisory?

Our hospitality project financing is a core component of our broader hotel investment advisory service. The two are seamlessly integrated: the advisory team sets the strategic objective (e.g., target IRR, exit multiple), and the financing team executes the capital raise to meet those objectives. We ensure the financing terms align perfectly with the long-term Investment Advisory strategy for the asset.

Does Consult Folio work with international hotel financing lenders?

Yes. Our network of hotel financing lenders is global, encompassing major commercial banks, international debt funds, institutional investors, and sovereign wealth funds across various continents. We match the project's scale, location, and brand with the appropriate capital source, ensuring competitive terms whether the project is domestic or requires funding for hotels and resorts from international markets.

What makes an Investment Memorandum prepared by Consult Folio compelling?

Our Investment Memorandums (IMs) are compelling because they are built on the proven data from our Feasibility Studies and framed by expert hotel advisory services. They clearly articulate the investment thesis, meticulously detail the financial projections, rigorously analyze the risks and mitigation strategies, and present the exit strategy. This professional packaging instills immediate confidence in sophisticated hotel financing lenders and equity partners.

Can you assist with the financing of a distressed asset turnaround?

Yes. For distressed hotel assets, we specialize in advising on equity recapitalization and debt restructuring. We act as the hotel development consultant to stabilize the asset's financial structure, often requiring a new Feasibility Study to prove a clear path to profitability, which is essential for attracting turnaround capital and convincing existing hotel financing lenders to agree to new terms.

What are the key terms you negotiate on the owner's behalf?

We negotiate all critical commercial terms, including interest rates, loan-to-value (LTV) ratios, amortization schedules, personal guarantees, covenants, and prepayment penalties. Our priority is to secure non-recourse or limited-recourse funding for hotels and resorts, minimize fees, and ensure the loan's financial covenants are achievable based on the hotel business feasibility projections.

Does Consult Folio guarantee financing for a project?

While no ethical hotel investment advisory firm can guarantee financing, our rigorous pre-submission screening and preparation process ensures the project is positioned for the highest probability of success. We only move forward with projects that have a strong, data-backed hotel business feasibility case, preventing clients from wasting time and money pursuing non-viable opportunities with hotel financing lenders.

How does your fee structure work for hospitality project financing?

Our fee structure for hospitality project financing is typically performance-based, calculated as a percentage of the total capital successfully raised. This structure ensures our incentives are directly aligned with yours: we are paid for successful execution. We may also charge a smaller, fixed retainer for the initial preparation and advisory phase, minimizing the client's upfront risk.