A convention hotel is one of the largest projects in the hotel and hospitality industry. If you're buying a convention hotel, the first thing you'll need to do is have a building inspector go through each area of the hotel to make sure there are no code violations or areas of concern. The convention rooms, banquet halls, and restaurants all add to the value of the property, but they also come with hefty liability problems if all current safety standards haven't been met. Check with the local building inspector's office and make sure the property you're preparing to buy meets current codes and regulations.

 

Once you know your hotel is up to code, have an independent estimator come in and valuate the property for you. The asking price should be close to the value or below. If it's much lower, the bank may ask why. No one sells short without a good reason. The recent economic recession could be the reason, or there could be a problem with selling the hotel out because of location or poor reputation. These are questions that need to be answered before you write your business plan. Know what you're walking into before you take the first step. Once you have the complete picture, draw up a plan of action.

 

Your next step is simple. Fill out one application form here at iBank and we'll shop it around to lenders to find you a commercial mortgage. If you give it a few days, you should have multiple offers that you can choose from. Rates and terms will be different for each of them, so wait as long as possible until you see one that looks like what you're looking for. Each of the banks and lenders we have on our list offers different types of mortgages and loans, so you may find offers that are significantly different from others. Make sure you're clear about what you want and why.

 

In addition to a commercial mortgage to buy the convention hotel, you will also need working capital and lines of credit to run it. If it needs work of any kind you may have to apply for a construction loan to do renovations or a development loan if you plan on building an addition. Once you're a member here at iBank you can come back any time to seek out new funding sources or you can simply work with the first lender you find and set up all the financing you need.