Lease-Option Purchase Agreement Financing for Hotels
Lease-Option Purchase Agreement Financing for Hotels: How to Finance a Lease-Option Agreement
Structuring lease-option purchase agreement financing can unlock hotel acquisitions without full upfront equity. Financely specializes in lease option hotel purchase financing for hotels , mapping two-year lease option funding structures and delivering a lender-ready package in 5–10 business days.
What Is Lease-Option Purchase Agreement Financing?
Lease-option purchase agreement financing provides short-term control of an asset via an upfront option payment, followed by a fixed purchase price at option expiry. Our service covers everything from modelling the $100K lease-option deposit to securing the $25M forward purchase financing—ensuring lenders understand the risk and upside.
Lease Option Hotel Acquisition Financing Explained
In a lease option hotel acquisition financing structure, you pay a nominal fee (e.g., $100K) to secure a two-year option on the property. During that period, you may invest in renovations and benefit from franchise rebates. We build a financial model that layers bridge loans and equity contributions, demonstrating how improved EBITDA justifies your long-term purchase.
Financing Lease-Option Agreements on Hotel Properties
Financing lease-option agreements on hotel properties requires integrating option fees, renovation budgets and terminal value into a cohesive capital stack. Our diligence pack includes the lease-option agreement, franchise incentive schedules and pro forma occupancy ramps—so lenders can price and underwrite your deal with confidence.
How to Secure Lease Option Hotel Purchase Financing
- Negotiate and finalize the lease-option purchase agreement with defined option fee, purchase price and expiry terms.
- Develop a renovation and repositioning plan to maximize franchise rebates and uplift valuation.
- Structure a capital stack: bridge loan for option fee, renovation financing, and forward purchase debt.
- Compile a lender-ready diligence pack: lease-option docs, P&L history, renovation scopes, title reports.
- Present a polished term sheet and investor deck, highlighting IRR, DSCR and exit value at option expiry.
Financely’s in-house bankers turn these components into a seamless proposal, reducing lender questions and accelerating approval.
Ready to master lease option purchase agreement financing for your next hotel acquisition? Discover our real estate financing solutions and receive your onboarding link within 24 hours.
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