Access Point Financial, Inc., (APF) a direct full-service lending and advisory firm focused on the hospitality industry, today announced it projects expanding its Bridge and CapEx lending platform by $200 million in the first quarter, following an active 2012 during which the company facilitated more than $200 million in CapEx, bridge and new build project development costs in the last half of 2012.
“We plan to continue expanding our capabilities in response to economic and industry conditions,” said Jon S. Wright president and CEO of Access Point Financial. “We expect debt financing for the hotel industry to remain constrained due largely to economic and political uncertainties. We are keeping a close eye on unemployment figures, which will have an impact on interest rates going forward.”
“As one of a limited number of national lenders to the hotel industry, our record through multiple cycles gives us the confidence to continue to be an active player in this emerging phase. We look at 2013 with tempered exuberance because we see continued opportunities for prudent financing in the hotel industry. We completed more than 60 CapEx, bridge and development loans in the past year and are on pace to exceed that in 2013.”
Wright said APF has closed loans for hotels from Alaska to Florida. “In many ways, we are becoming a nationwide community bank to our clients as many local community banks are now limited to lending within their local footprint. We have long-standing relationships with owners and franchisors which enable us to offer borrowers a certainty of execution, as well as the confidence that we can respond promptly as opportunities can be lost within a matter of days or even hours.
APF currently provides three types of financing:
CapEx Loans
APF provides up to 100 percent of the cost of renovation for brand-mandated initiatives. CapEx and brand conversion loans ranged from $500,000 to $10 million. These recourse loans are fully amortizing over three to 10 years and allow for an interest only period based on stabilization needs.
“Demand for CapEx financing will continue to increase as brands tighten their standards,” Wright said. “While it is difficult to put a precise number on industry-wide CapEx lending for 2013, industry experts believe it will easily top $5 billion. Our experience and knowledge of the industry enable us to underwrite and close in as little as five days in many cases.”
Bridge Loans
For low leveraged refinance or acquisitions paired with a renovation, APF can provide bridge financing which allows for as much as 70 percent loan to value up to $10 million.
“We see rapid growth in this sector due to the continued high volume of loan maturities coming due over the next several years,” Wright said. “As the industry strengthens, opportunities for refinancing will become more prevalent.”
Ground-up Construction Loans
APF will finance new construction projects backed by conservative leverage and brand sponsorship. Recently APF facilitated the development of a $37.5 million dual-branded, Residence Inn/SpringHill Suites hotel in downtown Nashville, providing 65 percent of the total project costs.
“Development will be by far the most difficult to finance this year, given the uncertainty in the economy,” Wright said. “We will continue to lend for development but only to top hoteliers with a proven track record and brand sponsorship.”
To further expand its lending platform, APF is in discussions with other potential debt providers to leverage its equity base.
“The watchwords for hoteliers in 2013 are flexibility and nimbleness,” Wright said. “Until the country resolves its fiscal issues and the economy strengthens, hotel financing will remain somewhat challenging with terms that reflect current economic conditions. In order to meet guest and client expectations, hoteliers and lenders alike must be able to move quickly, creatively and prudently.”
About Access Point Financial
Access Point Financial, Inc. (APF) is a direct full-service lending and advisory platform based in Atlanta, Georgia serving branded and independent hotels in the United States and Canada. Access Point Financial was formed by Stone Point Capital, a private equity firm based in Greenwich, Connecticut and the APF Management team. For additional information, please contact 404-382-9599 or visit www.accesspointfinancial.com.
