A Look At Alternative Financing For Hotel Developments

Law360, New York (March 24, 2014, 12:14 PM EDT) -- Slowly but surely, it's back: hotel development. Not as prominent or abundant as pre-2008, but new hotel projects are slated for popular locations, by experienced developers and in areas with minimal variables (such as predictable temperatures and easy travel access).

Despite the pace of hotel development increasing, it remains difficult to finance such projects, as seen by large loan-to-cost ratio gaps. One solution to obtain necessary financing for the construction of new hotel projects is to cobble together multiple financing arrangements, such as the use of...
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