Lenders continuing to be careful of hotel construction financingdeals; however, borrowers looking to secure hotel constructionfinancing have plenty of options. The Robert GreenCo. recently secured $212.3 million in constructionfinancing for the development of the 145-acre SilverRock Resort andResidences in La Quinta, CA. George Smith Partnerssecured the loan on behalf of the developer, and says that thereare options for borrowers looking to secure hotel constructionfinancing.

“Lenders continue to look carefully at both risk profile andasset class in the hospitality space,” MalcolmDavies, principal and managing director at George SmithPartners, tells GlobeSt.com. “Terms and leverage can vary greatlyin hospitality financing. For select service and limited servicehotel product, we are finding that lenders will stretch a bitfurther on leverage. For example, we recently secured financing forthe repositioning of a Hilton Garden Inn in Davis, California at 85percent leverage. That ratio is higher than a hospitality projectwe are currently working on in Portland, which is being financingby a large bank at 65 percent leverage.”