WINSTON, GE OFFER ONE-STOP FINANCING
An innovative program from Winston Hotels and GE Commercial Financing, Franchise Finance has made it easier and less expensive for hotel developers and purchasers to secure financing. The one-stop-shop program offers loans for up to 85 percent of a project's construction cost. The program is also available for hotel acquisitions and refinancing.
The financing scheme marries a first mortgage with a mezzanine loan, a process that typically involves two or more lenders. Under the Winston/GE plan, the borrower has one blended rate and one mortgage payment.
“It makes the financing process seamless and much easier for the borrower,” says Joe Green, president and CFO of Winston Hotels. “Also, the cost factors are more favorable for the borrower. Unlike the traditional approach, this program requires just one set of loan documents, which makes it considerably less expensive to execute.”
North Carolina-based Winston has a unique business model with several distinct growth strategies. In addition to its role as a provider of debt, the REIT acquires or develops and owns limited-service, upscale extended-stay and full-service hotels, either on its own or with joint-venture partners.
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