Hotel - Motel
Project Market Feasibility Studies...
Rainmaker
Marketing Corporation provides hospitality industry due diligence
services (like hotel
& motel project market feasibility studies, financial
feasibility studies and capital
finance plan proposals) in addition to the new fractional real
estate sales 
syndication of tenant-in-common interests on projects
larger than $7,500,000. Most hotel/motel project market
feasibility studies focus on the requirements necessary to support a
private placement offering of securities and the real estate syndication
aspect of the project is left moot. However, the steps remain
the same with the same requirements for the analysis of demand generators that
would support new construction demand and Rainmaker provides this analysis using
a unique, proprietary approach that has a higher degree of certainty than other
conventional methods.
What does
this really mean and how can it impact your project?
It means the
equity syndication component of the hotel (or motel, as the case may be)
project feasibility study is assumed to not be a requirement, leaving
many new developers without sufficient equity financing to move forward,
save those situations where the developer has an angel investor.
We take it
further. Our focus is almost totally devoted to the equity
syndication aspects of every commercial income-producing property
development transaction we are retained to support.
Hotel and motel loans continue to suffer
significant reductions of loan-to-cost ratios because the hospitality
projects have, by and large, suffered through a dearth of institutional
financing and has had to rely upon commercial bank loans. These
loans are providing no more than 70% of the total development budget as
a general rule, so at-risk equity financing is of critical importance to the
single property developer or owner/operator. The problem has been
that most developers - who would develop a property under ideal
conditions - are left at the starting gate because they don't have
access to the equity financing on terms that are anything short of a
rip-off.
Every new commercial real estate development project requires capital
financing to bring assets together to complete a business purpose -
acquiring cash flows. Equity is created by virtue of many
different mechanisms that all require some type of operating activity be
undertaken with the business assets. Rainmaker is there to help
you understand the demand, the opportunity and the capital financing
structure that will make your hospitality/lodging industry new
construction project a success.
