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                                SCHÖNBÄCHLER (SCH) INVESTMENTS SÀRL 


SEIFERT & SCHÖNBÄCHLER INVESTMENTS Hospitality Finance

If you’ve ever thought about opening your own small hotel, one of the first questions you’ll probably have is: ‘how do I finance it?’

Financing a hotel is always going to be a challenge, regardless of the economic climate, particularly for those who are new to trade or first-time buyers with no track record. The good news is that we can help you.

It’s a vibrant sector; there’s strong demand for high-quality, freehold properties at the moment. What’s more, lenders are keen to offer hotel funding to the sector, as a freehold asset is largely seen as excellent security. The loan-to-value ratio (i.e. what you are borrowing against the value of the business) has remained static in this area, typically around 60-70%, although it is possible to secure higher levels of debt if you have additional security, provided it meets the lender’s commercial mortgage criteria.

Factors affecting hotel lending

Numerous factors have an impact on securing hotel finance, and with our help, we can make your application for a hotel mortgage far more attractive to a lender:

– A deposit of 30% or more
– Additional security
– Business plan
– Proof of experience in 
the sector or other relevant experience 
– Good personal credit history
– Three years’ vendors trading accounts
– Comprehensive debt application from Stewart Hindley & Partners.

Of course, there’s a process to follow, knowing which lenders are best suited to your needs and that’s where we come in.

Finance arranged from € 250,000 to € 2M. 

  1. Funding up to 100%
  2. Capital and interest repayments up to 60 months.
  3. Loans are for business purposes only and include:
  4. Business Purchase
  5. Business Expansion
  6. Business Restructure
  7. Refurbishment
  8. Buy Back Equity

EQUITY

Invested money that, in contrast to debt capital, is not repaid to the investors in the normal course of business. It represents the risk capital staked by the owners through purchase of a company's common stock (ordinary shares). The value of equity capital is computed by estimating the current market value of everything owned by the company from which the total of all liabilities is subtracted. On the balance sheet of the company, equity capital is listed as stockholders' equity or owners' equity. Also called equity financing or share capital

DEBT

Debt financing occurs when a firm raises money for working capital or capital expenditures by selling bonds, bills or notes to individuals and/or institutional investors. In return for lending the money, the individuals or institutions become creditors and receive a promise the principal and interest on the debt will be repaid. The other way to raise capital in the debt markets is to issue shares of stock in a public offering; this is called equity financing.

MEZZANINE FINANCING

Mezzanine financing is a hybrid of debt and equity financing that gives the lender the rights to convert to an ownership or equity interest in the company in case of default, after venture capital companies and other senior lenders are paid. Mezzanine financing, usually completed with little due diligence on the part of the lender and little or no collateral on the part of the borrower, is treated like equity on a company's balance sheet.

ACQUISITION

An acquisition is a corporate action in which a company buys most, if not all, of another firm's ownership stakes to assume control of it. An acquisition occurs when a buying company obtains more than 50% ownership in a target company. As part of the exchange, the acquiring company often purchases the target company's stock and other assets, which allows the acquiring company to make decisions regarding the newly acquired assets without the approval of the target company’s shareholders. Acquisitions can be paid for in cash, in the acquiring company's stock or a combination of both.

REFINANCE

Refinancing is the process through which a company reorganizes its debt obligations by replacing or restructuring existing debts. Refinancing may also involve issuing equity to pay off a percentage of debt. 

Debt is replaced or refunded by a company with money that is raised by issuing or creating other borrowing. In restructuring, a company works with its creditor to change the terms of a loan; these terms can include the reduction of interest rates, the improvement of covenants or the extension of the loan's terms.

GROUND UP DEVELOPMENT

Ground up development involves starting a building project from an undeveloped parcel of land and working toward a finished building.

We specialize in full-service, premium select service, luxury/resort, and stabilized properties with a minimum acquisition size of $5 million.