MMR Realty Advisors
3701 Maywood Court
Carrollton, TX 75007
(214) 924-6026
(972) 492-6753 (fax)
| Other Loan Types |
| Hotels |
| Offices |
| Apartments |
| Industrial |
| Mobile Home Park |
| Retail |
| Self-Storage |
| Mezzanine |
| Small |
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HOTEL and MOTEL PROPERTIES |
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| Eligible Properties: | Prefer limited-service, quality-flag properties, Consider full-service properties, but apply limitations to food and beverage revenue. Minimum stabilized occupancy of 60%. Room mix, size and layout should be marketable and comparable to other successful in-market hotel properties. Franchise agreement must have a remaining term of five years beyond the loan term. |
| Eligible Property Locations: | Nationwide; Market areas with a stable occupancy. Access to major highways is important. |
| Loan Size: | $1 Million - $15 Million; may consider up to $25 Million. |
| Debt Service Coverage: | Generally, 1.40 minimum. |
| Loan-to-Value Ratio: | Up to 70%. |
| Loan Term: | 7 or 10 years; self-amortizing long-term loans are also available. |
| Amortization: | 20 to 25 years. |
| NOI Calculation: |
Underwrite revenues based on the trailing 12-month history, with adjustments where appropriate, and with reference to industry standards. Maximum occupancy of 75%. Required allocations: Management Fee - Minimum of 4% of total gross revenues. Replacement Reserves - Minimum of 5% of total gross revenues. Franchise Fee - The greater of 4% of total gross revenues or the actual franchise fee.
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