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ON THE TABLE?
How non-recourse CMBS lenders determine
your maximum loan amount.
by RUSHI SHAH
OR BANK AND OTHER
recourse loans that require
personal guarantees, both
the borrower's and the
property's ability to pay
back the loan are evaluated.
Non-recourse loans from lenders who
pool their loans into bonds for investors
to buy on the secondary market (which
translates into lower interest rates and
longer term fixed rate for borrowers),
however they require that the property alone be able to sustain the loan
50 | OCTOBER 2016 | TODAYSHOTELIER.COM
payments or be sold at an expected value
in the case of borrower default.
It is wise to know what metrics influence a lender's decision-making process
to ensure your hotel is assessed accurately and that you receive the maximum proceeds possible at the market's
best available rates and terms.
Before a loan amount is calculated, lenders will confirm that your property is
performing at or above your peer group
Table of Contents for the Digital Edition of Today's Hotelier - October 2016