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Hotel/Motel Loan Underwriting Guidelines

Please incorporate the below minimum guidelines guidelines when you prepare and submit your proforma for underwriting approval:

Rental Income:Based upon prior 18 to 24 months income.  Please furnish ADR and occupancy figures for same periods.
(+)Other Income:Must be supported by historical collections
(-)Vacancy:Maximum of 75% occupancy
(-)Management Fee:Equal to the greater of the actual management fee or 5%
(-)Franchise Fee:Equal to the greater of the actual franchise fee or 5%
(-)Marketing Expense:Equal to the greater of actual marketing expense or 5%
(-)Operating Expenses:Should be supported by previous 2 years and current year-to-date expenses
(-)Capital Reserves:Minimum of 4% of total income, depending upon property age and condition
 EqualsNet operating income