& Industry Loans
$2 Million - $25 Million
50,000 or Fewer
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 nearly 25% of NAC's loan portfolio and help foster enjoyable stays for travelers nationwide.
North Avenue Capital (NAC) offers Hotel Loans backed by the confidence of the USDA. NAC structures Hotel 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 Loans for all types of growing businesses, ground-up construction, and startups.
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, “Mr. 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.
Commercial Real Estate
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.
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.