The 504 Loan Program Levels the Playing Field for Hoteliers
US Hotel rooms under construction are up over 20% from a year ago, according to the STR Pipeline Report, and consumer demand is still increasing. In fact, economy hotels in the planning or construction phase are up a whopping 63%! How can hotels, especially smaller hotels, afford to keep pace with such soaring demand? Since hotel properties are not easily converted to other uses, they are considered special purpose properties by commercial lenders. This designation makes financing harder to acquire.