Hotels
I've got a proposed development that includes a hotel. Any pointers on finding investors or potential partners for that specific item? Do hotel owners generally own more than one? (i.e. so approaching one would be worthwhile?) I've found a few classified websites that had some people looking to buy, any other places that I can look tho? Do local rei groups deal with larger projects like this? I really don't want to fool with this portion of the project too much, almost treating it like a flip, but I will be doing the "developer" work of zoning and overall layouts, etc.
I'd try to figure out what type of hotel you are considering ---> what might the market support for room charges, etc. Then call the big chains talk to the people responsible for soliciting new franchises, with those brands - they will know the operators and developers that might be interested in yrou property.
HRparks,
It sounds like you are looking for funds to develop the project and flip. If you are a developer and have done other projects, myself or any other commerical mortgage broker can get you the financing. As far as finding partners, a hotel owner is going to want to know some things about the project.
Is it going to be an independent or franchised? Does it have interior corridors or exterior corridors? Any plans on turning it into a condotel? Where is the hotel located?
If you have any other questions feel free to PM me.
Check into AAHOA. They are located at
http://www.aahoa.com/. I have built lots of hotels over the years and they are one of the leading groups of developers for smaller type of properties ie under 200 rooms. Be very firm in your negotiations as most menmbers love to negotiate.....
Imarstellar, thanks for the tip. I'll check them out, although this is a slightly larger project.
Feltman, thanks for the suggestion. I'll try that route, but this won't be a chain. Never know tho.
Shizah, you're on the right track. I'm actually looking for the flip to generate some of the funds needed to develop the rest, not the other way around. I already have the biz plan and details, just need the contacts for who to approach.
I think all ya'll have given me good leads tho. Thanks!
Saw some really good tips.
Some other items to consider will be:
the experience of the developer for the funding source. since most lenders look at track record of the franchise and operator along with all contracts in place. these days lenders will probably feel comfortable at 65% ltv. where is the remaining equity coming from?
depending on the project (flag, operator, etc.) you may secure some mezz funding, and yet that will bring you to 75-80%. you said it's a large project. once you get to the high eight and nine digits that 20-25% spread gets mighty large so what's next is a good IB to raise the equity. someone that has tremendous experience in the area you are looking to develope.