Take Cover with Our New Bridge Loan Program

In response to the challenges facing the hospitality industry from the COVID-19 pandemic, president of HALL Structured Finance (HSF) Mike Jaynes introduces HSF’s new bridge loan program directed towards hotel owners, operators and developers in need of recapitalizing their property during these challenging times.

The pandemic has left hotel owners scrambling to seek financing due to lack of liquidity in the COVID-19 economy. Highlighting the unprecedented blow, CBRE reported that overall hotel occupancy has decreased by 60.1 percent year-over-year, while RevPAR fell by 75 percent year-over-year in Q2. The Bureau of Labor Statistics also notes that the hotel industry lost 47 percent of its workforce in just one month. These devastating repercussions have made it increasingly difficult for owners and developers to find hotel financing.

New Hotel Bridge Loan Program

In response to these challenging circumstances, HALL Structured Finance (HSF) has launched a new loan program aimed at filling the current financing gap and existing void of lending sources available as the hospitality industry begins the road to recovery.

The HSF bridge loan program is focused on financing projects that are five years old or less, with an emphasis on select service, limited-service, and extended-stay hotels. Loan sizing ranges from $10 million to $25 million,  with total loan exposure being capped at 75% of current value. Among other opportunities this loan program can help re-capitalize owners of hotels that need to replace existing debt due to near term loan maturities and/or other default situations. While our program extends nationwide, we are preferential to hotels located in the Southwestern and Southeastern regions of the United States with great long-term growth prospects.  HSF’s existing loan portfolio contains a number of assets located in the Southwest and Southeast and we are well-versed in these regions. We are strong believers that well located, strong-flagged, select service, limited service and extended stay projects are going to come back strong.

Knowledge and Expertise

HSF has a flexible, tailored approach to financing hotel properties and a highly skilled team with over 30 years of experience in commercial real estate and lending. As a private, non-recourse lender that has been financing construction and existing hotels over the last 20 years, we have unmatched expertise in this area and are ready to do our part in supporting the hospitality industry during this difficult time.