Because non-recourse CMBS and other Wall Street institutional investors focus primarily on the property, your hotel’s flag will be a key factor in your lender’s decision.

Hotels with strong brands, such as Marriott and Hilton, that enforce operational and physical standards, support owners by providing sales and management training and tools, negotiate preferred pricing with vendors and generate demand via marketing and membership loyalty programs, are typically better positioned for success with more predictable performance. The risk of the borrower defaulting on the loan is lessened, and if there is a default, the lender is more confident it will have a favorable exit strategy.

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