Access Point Financial (APF) announced the launch of its PIP Renovation Program designed to support hotel owners in meeting franchisor-mandated improvements and refreshing their assets.
The PIP Renovation Program is a solution to allow hotel owners to access capital for the costs involved in completing required renovations. Additionally, this program can include CapEx Loans for a property refresh that is not associated with a franchisor-mandated PIP.
“At APF, we understand the dynamic needs of hotel owners in the current marketplace,” said Michael I. Lipson, CEO, Access Point Financial. “Our PIP Renovation Program is a comprehensive solution to provide financial support and flexibility to hotel owners for property improvements. With our understanding of the industry, we can offer a swift approval process to empower hoteliers to fund the renovation of their properties seamlessly.”
Some features of the PIP Renovation Program Include:
- Loan size from $1 million to $5 million, with larger loans considered on an individual basis
- Typical loan structure with a 24-month interest-only period followed by a five-year fully self-amortizing period, allowing flexibility for the hotel owner
- One percent origination fee
- Available to all qualified multi-unit hotel owners of branded properties throughout the United States
“The PIP Loans we are offering bring a new level of financial assistance to hotel owners,” said Matthew Hick, managing director—business development, Access Point Financial. “We look forward to working with owners to provide an innovative lending solution that works alongside their existing mortgage to allow them to renovate their assets, keep up to date with brand standards, and compete at a high level amongst their competitors. This program provides two years of interest-only payments to allow hotel owners time to renovate and ramp up property operations. Additionally, owners avoid needing a capital call to their investors, and it is less expensive than mezzanine debt.”
