The Move Toward More Modern Amenities


Hotel ownership can be a great way to make money, but it also requires a ton of work. If you’re known for offering a certain experience, doing anything less can lead to a bad reputation. The owner of this hotel knew that there were several updates and additions that should be made to ensure the hotel remained one of the best in the area.


Renovating some of the rooms, adding an event room, and updating some of the restaurant space were the major things that needed to be done. However, the money to do this wasn’t going to come out of his pocket. He was going to need to start with some research.


The Cost to Remain at the Top


The first thing the owner did was start researching prices for all the updates he wanted to make. He went through tons of case studies and white papers to get accurate information before moving into the process of finding financing. With several needed changes, it was going to need a decent chunk of change to get started.


After doing the calculations and checking them against other hotels, it was determined that a loan of $2,000,000 would be needed. At this point, the research turned a corner toward finding the optimal financing option.

Which Loan Is the Perfect Loan?


Since this hotel is upscale and highly profitable, the owner had his choice of loans. Everything from a line of credit or asset-based loan to an SBA loan or merchant cash advance was on the table. This was a good thing in that so many options were available but it would take time to decide which had the most substantial benefits.


After sifting through all the financing options, the owner decided to move forward with an SBA 7(a) loan. It was a great way to get the financing needed with several benefits that weren’t associated with other alternative forms of financing.


The Many Reasons to Select an SBA 7(a) Loan


One of the great things about the SBA 7(a) loan is that it can be as much as $5,000,000. In addition, term lengths can be up to 10 years with funding within three months. All of these things pushed this financing over the top for the hotel owner.


With monthly payments and a low interest rate, the owner jumped at the chance and went forward with this highly versatile loan for those who have been in business for several years and making decent revenue.

How Everything Is Going Now


Once the SBA 7(a) loan went through, planning was nearly done for the renovations. Work started quickly and everything was done earlier than planned. The extra amenities, luxurious rooms, and revamped kitchen have made the hotel even more popular than ever.


With more money coming in as time goes on, the owner is delighted he went forward with the loan. He knows that he has an option available in the future when new technology and renovations are needed. For now, he’s just enjoying his success.

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