Full in August, renovating in November.
Hotels, motels, inns and venues earn in one season and spend in the other: refurbishments, roofs, HVAC and the brand standards that arrive with a deadline. The work has to be done before the guests come back.
The problem
Occupancy follows the calendar, and so does cash. A property that is full for four months has to carry staff, utilities, maintenance and debt through the other eight. The renovation that keeps the ratings up can only be done when the rooms are empty, which is exactly when the money is not coming in.
Franchised properties carry brand standards: a property improvement plan with a date on it. Independents carry the same needs without the name: new bedding, a lobby, a kitchen, a roof.
Hospitality files are read for occupancy, rate and season, and funders differ on how much seasonality they like. Presenting a full year rather than a quarter is what gets a property taken seriously.
- How you get paid
- On arrival and at checkout; groups and events on deposit
- Where the gap is
- Off-season renovations, brand standards, staff through the quiet months
- What tends to fit
- Equipment financing, a line of credit, SBA and bank loans
How we help
Renovations funded in the off-season
A line or a term loan pays for the refurbishment while the rooms are empty, and is repaid over the seasons it improves.
Equipment financed as equipment
HVAC, laundry, kitchen and furnishings financed against themselves rather than against the property.
Longer money for property improvement
A brand-mandated improvement plan or an expansion is a bank or SBA conversation, and we help build the file for it.
What usually fits
Which one, or which two, depends on the file. These are the ones we reach for first with hospitality.