Lodgings/Restaurants/Bars, Lodgings, Hotels/Motels, Real Estate/Construction, Leisure/Arts/Hospitality, Real Estate, Tourism, Political/General News, Real Estate/Property, Synd

Lodgings/Restaurants/Bars, Lodgings

Hotel Sellers Use Car-Sales Model to Finance Lodging Deals

Banks and property owners are offering cheap rates and sometimes requiring little money down to unload unprofitable hotels

3 hours ago

Banks and property owners are offering cheap rates and sometimes requiring little money down to unload unprofitable hotels

The lodging industry is under such stress that some property sellers are willing to lend to prospective hotel buyers the way auto dealers finance vehicle sales: Offer cheap rates and sometimes with little money down.

With the typical hotel purchase, a property buyer pays the seller the full purchase price upfront and finances the deal in part with mortgages. But these loans have been harder to come by with the lodging business struggling.Seller financing is the real-estate equivalent of buying a car with dealership financing. A hotel buyer pays only part of the price upfront, usually between 25% and 50%. The rest is treated as a loan from the seller to the buyer, and interest rates are often far lower than for traditional mortgages.

Bitcoin slides another 16%, falling below $50,000 as Janet Yellen raises the alarm How these cranes escaped a life as status symbol pets in Rwanda Mother of 11-year-old Texas boy who died during power outage sues ERCOT, Entergy

For sellers, the practice avoids painful write-downs in the present, but it also risks merely delaying a reckoning. By lending to the new owner, they remain tied to the hotel and at risk of losses if the still-soft lodging market doesn’t recover soon enough.

Read more: The Wall Street Journal »

Welcome to Gigi Hadid’s Grand Fantasy Fashion Game

The model plays her very own video game.

Shutdown: big fish eats like fish...it’s working. This sucks. Big hotel chains buying boutique hotels. For all those who are new to this working from home Bitcoin trading options Here's a little tip: Get a trusted Bitcoin expert and stick to her lisaMakT Invest and play at similar times each day. Because : In times of chaos, your investment is your anchor to success⚖️