THE HOTEL INDUSTRY
The hotel industry is long-standing and can be quite lucrative even as it stays innovative, expanding into wide-reaching areas of the world. The demand for hotel development funding continues to increase as this sector remains an attractive market for developers. However, raising capital is one of the most difficult challenges faced by today's hotel entrepreneurs. This is where an experienced and award-winning Merchant Banker can help.
FUNDING A HOTEL PROJECT
A great feature in funding hotel or resort projects is the fact that:
Traditional funding instruments can and often are used, and
NO special accommodations or arrangements need to be added on to a funding arrangement involving a resort or hotel development.
The best case scenario is if you (as project promoter/owner) have a strong business plan with detailed phased segments right from the start, should that be necessary, along with written demand (or even pre-sales) from potential clients in the case of real estate add-ons. Why? Because for investors it is a guarantee of return on their investment, not to mention that it is also a steady guaranteed payment on the debt of the development.
THE FUNDING PROCESS
On the business end of a resort or hotel project, the promoter/ project owner is required to produce essentially the same basic information and documents as he/she would in any other type of project:
• Business Plan
• Feasibility Study (if you have it)
• Any and all information and documents connected with
the project's development, land to be procured, etc.