Hotel & Hospitality Loans | North Avenue Capital - NAC

 Hotel & Hospitality Loans

FROM NORTH AVENUE CAPITAL

USDA Business
& Industry Loans

Loan Amounts

Starting at $2 Million

Serving Rural America

with a Nationwide Reach

NAC-Funded Hotel & Hospitality Projects

NAC-Funded Hotel & Hospitality Projects: Hilton Garden Inn
NAC-Funded Hotel & Hospitality Projects: Sleep Inn
NAC-Funded Hotel & Hospitality Projects: Home Hotel
NAC-Funded Hotel & Hospitality Projects: Comfort Inn
NAC-Funded Hotel & Hospitality Projects: Choice Hotels

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Hotels provide solace for those on vacation, visiting loved ones, staying for business trips, facing emergency situations, and more. Whether your hotel lending needs require a refinance, reflag, purchase, or convert, North Avenue Capital has perfected the hotel loan process to fit your needs.

 

Through the USDA Business & Industry Loan Program, NAC partners with hoteliers to establish, grow, and expand. Hotel and Hospitality Loans make up over 25% of NAC's loan portfolio and help foster enjoyable stays for travelers nationwide.

North Avenue Capital (NAC) offers Hotel Loans and Hospitality Loans backed by the confidence of the USDA. NAC structures Hotel Loans and Hospitality Loans to provide cash to operate, without ceasing production in order to meet demand. Our borrowers are accustomed to the confidence, expertise, and established relationship NAC offers.

 

We understand what it takes to create a place of comfort for travelers and sustain a business because we are a small business ourselves. We provide Hotel and Hospitality Loans for all types of growing businesses, ground-up construction, and startups.

Mini Case Study: Hilton Garden Inn Tifton

Shortly after completing construction on a Hilton Garden Inn in Tifton, Georgia, chaos hit Wall Street and Stafford Development Company’s (SDC) financial institution was in a bind.

Although SDC enjoyed the backing of a respected Fortune-500 brand and had a strong track record of honoring obligations, the bank demanded a shift in the existing financing structure. This adjustment would have jeopardized the stability of the hotel, and potentially the strength of SDC’s entire business.

Reflecting on the situation, SCD’s CEO, DeNean Stafford, had this to say: “We were backed into a corner by someone we thought was a partner… The credit crisis was causing our financial institutions to lose sight of the big picture and commitments they had made. Our plans and the outlook of the project hadn’t changed. But nonetheless, they reacted to macroeconomic issues unfavorably, and we found ourselves in an impossible situation.”

It was during this time that SDC became aware of the USDA B&I Loan Program and decided to transition away from its established Wall Street lender and into a more stable lending relationship. 

According to DeNean, “Eric Johnson (former president of North Avenue Capital) introduced us to the option of partnering with the USDA to refinance our debt, remove the incumbent bank from the equation, and continue managing this great hotel toward what we believed was certain profitability.” 

After walking through the detailed underwriting process and closing the new loan, SDC was able to refocus its attention on managing the growth and profitability of its investment.

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Sorry, we do not service loans for residential homes or residential family housing. 

Hotel Loans through the USDA Business & Industry Loan Program

ELIGIBLE LOAN TYPES FOR HOTEL LOANS

USDA B&I Loans for For-Profit Businesses

For-Profit Businesses

Flag Change Loans

Reflag

USDA B&I Loans for Family-Owned Businesses

Family-Owned

USDA B&I Loans for Startups

Startups

USDA B&I Loans for Refinances

Refinance

Conversion Loans

Conversion

Franchise Loans

Franchise

Energy Efficiency Furniture/Fixtures/Equipment

Energy Efficiency

USDA B&I Loans for Acquisitions

Acquisitions

Furniture/Fixtures/Equipment

FF&E

 

Financing a Project Other than a Hotel?

RV Park Loans, Outdoor Experience Loans, Adventure Tourism Loans, Nature Retreat Loans. 

At NAC, our team of rural lending experts is here to assist applicants throughout the entire process. We specialize in providing financing solutions for hotel and hospitality ventures, as well as loans for RV parks and outdoor experiences. Many business owners are pleasantly surprised to discover that the USDA's support extends beyond agriculture. In fact, the USDA Business & Industry Loan Program is not limited to agriculture in any way. This program offers government-guaranteed loans and grants to a wide range of rural small businesses, including those in the hotel, hospitality, RV park, and outdoor experience sectors.

 

When it comes to outdoor experiences, we understand the unique financing needs of businesses in this exciting industry. Whether you're looking to expand your adventure tourism business, develop a nature retreat, or create an unforgettable outdoor destination, our team has the expertise to guide you through the process.

 

With loans of up to $25 million available through the USDA Business & Industry Loan Program, we're committed to empowering entrepreneurs and organizations in rural communities with populations of 50,000 or fewer to turn their outdoor dreams into reality.

 

 

Examples of Project Financing Ideas Outside Hotels

 

Financing a Project Other than a Hotel?


RV Park Loans, Outdoor Experience Loans, Adventure Tourism Loans, Nature Retreat Loans. 

At NAC, our team of rural lending experts is here to assist applicants throughout the entire process. We specialize in providing financing solutions for hotel and hospitality ventures, as well as loans for RV parks and outdoor experiences. Many business owners are pleasantly surprised to discover that the USDA's support extends beyond agriculture. In fact, the USDA Business & Industry Loan Program is not limited to agriculture in any way. This program offers government-guaranteed loans and grants to a wide range of rural small businesses, including those in the hotel, hospitality, RV park, and outdoor experience sectors.

 

When it comes to outdoor experiences, we understand the unique financing needs of businesses in this exciting industry. Whether you're looking to expand your adventure tourism business, develop a nature retreat, or create an unforgettable outdoor destination, our team has the expertise to guide you through the process.

 

With loans of up to $25 million available through the USDA Business & Industry Loan Program, we're committed to empowering entrepreneurs and organizations in rural communities with populations of 50,000 or fewer to turn their outdoor dreams into reality.

 

Examples of Project Financing Ideas Outside Hotels

ABOUT NAC

For expert advocacy in hospitality, Look North.

The NAC team is comprised of savvy investors, experienced bankers, and creative marketers. Each brings a unique perspective to the table, empowering NAC to view each loan from multiple angles. We operate as a united front, working in tandem to offer our customers true partnership from engagement to close. For a true partner in securing funding for a hotel and hospitality project, Look North.

Defining Rural:

97% of America

Our customers are often surprised to hear that we only lend to rural businesses — and even more surprised to discover they’ve actually been operating one. 97% of the geographic U.S. is considered rural. Find out if your address qualifies in 10 seconds.

USDA Rural Eligibility Map Updated October 2023