Raleigh, N.C., Jan. 15, 2018 – CrediVia is a marketplace driving smarter decisions and real relationships in hospitality financing. In response to the hotel industry’s expected continued growth in 2019, the company has released guidance for lenders and hoteliers on trends that will influence their business in the coming year.
Anuj Mittal, CEO and co-founder of CrediVia, said, “Hotels don’t have the same long-term certainty as other CRE loans; the daily nature of their revenue is more unpredictable, which can give lenders pause. However, U.S. hotel occupancy is projected to reach record levels again in 2019. The industry’s stable and growing occupancy signals a potential for stronger rewards, which creates more confidence in the sector. Those positive economic factors, combined with new efficiencies realized from major technology advancements, suggest a high demand for funding hotel projects.”
The following are existing and imminent influences on hotel financing:
- - Increased comfort in digital offerings has permeated our culture, making it a timely opportunity for new technologies to improve hotel financing.
- - Technology is streamlining the borrower application and underwriting process – a workflow that remained largely unchanged up to this point.
- - AI will offer commercial lending new operational efficiencies, resulting in improved portfolio performance.
- - Lending policies will tighten as interest rates continue to rise and economic variables shift. This makes a complete picture of the borrower more important; collecting more applicant detail upfront enables lenders to better assess risk.
- - More lenders will invest in tools that make it easier to identify and analyze loan requests, easing the burden of originating new deals that fit their unique criteria.
- - New construction supply will even out and lending activity will shift to renovation and brand conversion projects. Borrowers who have completed construction projects will also look for take-out loan options.
- - Borrowers will remain challenged with finding the appropriate lender as well as the most competitive terms for their loan.
- -More borrowers will turn to debt-like equity with their capital stack structure to achieve a more favorable loan-to-cost ratio – examples include FF&E loans, EB5 debt, C-PACE financing, mezzanine debt, preferred equity, common equity, and crowdfunding.
- - Lenders will be successful if borrowers feel like they know them and have certainty they will close the deal, as a result more private and personalized offerings will emerge.
CrediVia is a marketplace that enables a simpler and faster commercial loan process. Its platform uniquely addresses key pain points that both borrowers and lenders face, thoughtfully matching each loan request to viable financing options based on lender specific criteria. Its single gateway ensures lenders get the application details needed to expedite a loan’s submission and approval, and that borrowers locate the right lender and best terms for their specific need at a much faster rate.
CrediVia is a cloud-based platform that directly connects hospitality lenders and borrowers, allowing them to have the greatest potential for mutual success. The online marketplace keeps the application process simple, fast and transparent without sacrificing the loan’s integrity. CrediVia becomes borrowers’ return source for new financing, and lenders’ reliable partner for loan relationships tailored to their portfolio. Visit CrediVia.com or follow @CrediVia for more information.