When considering options for hospitality loans many will also consider flagged motel loans. What are flagged motels and would a flagged motel loan be an option for someone looking to enter the hospitality industry?
Possibly the most well known motels, flagged motels are simply motels which are franchised. Big names like Motel 6, Super 8, and La Quinta Inn are extremely recognizable and can be found in several locations around the world. Flagged motels can be a great way of breaking into the hospitality industry as they offer many perks that an independent motel cannot.
The most important perk offered by opening a flagged motel is of course name recognition. Following name recognition comes reputation as well as customer loyalty to a specific name. An especially unique aspect of flagged motels is that within each franchise services and facilities are standardized allowing for a consistency across the board. This makes it possible for guests to find the “best fit” motel for them and stick with it throughout their travels. Though lacking the services of many full service hotels, flagged hotels offer a decent stay for good rates. Many flagged motels still maintain the basic amenities of a facility including several that offer a fitness room and pool.
There are several hotel loan programs that cater specifically to flagged motels offering better deals as well as more assurance in loan approval. Though a good starting venture, flagged motels can be pricey as they come with the franchise name attached. In spite of this, they are still a great choice for first time motel operators as they guarantee consistent flow of guests through their name recognition.
Finding the best loan programs and lending companies to go with takes significant research. If you take the time to do this research you will get a leg up on others trying to make their entry into the industry. This research can be conducted on any number of business lending sites from which you can receive pre qualification, pre approval and even instant payment. Solid information on a flagged motel can be obtained from the franchise itself as well as lending companies and any contacts you are able to make within the industry. Networking is the key to success in the hospitality industry and having direct contacts within the franchise you are interested in can guarantee the smoother opening and operating of your future flagged motel.
Another great perk for purchasing a flagged motel is the ability in the future to own multiple motels within the franchise. Holding more than one motel within a franchise can ensure a stable source of income for years to come. Selecting the right franchise to enter into the hospitality industry can give you the security of income you have always desired.
If you are in need of a flagged motel loan now, call the Underwriting Specialists at Liberty Capital Group, Inc.