Jared Schlosser

🏢 Hotel developers face financing challenges with traditional lenders scaling back and offering lower loan-to-value (LTV) ratios amidst higher interest rates. To counteract this, many are turning to alternative financing, such as private credit lenders and combining bridge loans with Commercial Property Assessed Clean Energy (CPACE) financing to maximize leverage. CPACE, once a niche option for sustainability, now provides competitive fixed-rate terms. Despite financial hurdles, hotel fundamentals remain strong, with constrained supply and robust travel demand driving occupancy and rates. Extended-stay and dual-branded hotels are particularly attractive due to operational efficiencies and viability. Private credit lenders have become vital, providing flexibility and understanding of complex capital structures. Creative financing solutions are in high demand for those seeking to lead in hotel development.