As hotel owners work on correcting lagging properties and bringing them up to current and new standards, they are finding they are faced with major capital expenditures. Some owners may not be aware that they may qualify for low-cost fixed-rate financing, which can be used to cover a portion or all of the PIP. Making it no longer necessary to sell the property when it needs to be updated.
You can keep your hotel, avoid a taxable event and retain much of the cash flow generated from the project. You just have to be willing to work for it. There are many factors to be considered here, including the strength of sponsorship, barriers to entry for new hotels and the potential for exit for the lender. All of which may generate enough capital for you to complete all upgrades and finance a majority of the costs at a low rate.
Research the different financing resources available for the PIP and find those which offer creative solutions specific for hotel franchises. Jump through the necessary hurdles and you may find the money needed for PIP requirements.
If you need help in the Western US, please contact Ed LaCivita or Craig Sullivan at Parkwest General Contractors.