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.