What To Expect When Going Through Hotel Construction

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• What To Expect When Going Through Hotel
  Construction
• Travel is an unavoidable part of life,
  although not necessarily a bad one! The
  hotel business is extremely lucrative, with the
  market growing every year since 2014. People are
  always moving from place to place by plane, bus,
  ship, train, car, and more. Quality lodging is
  always needed as it houses all kinds of
  travellers such has people on business,
  long-stay travellers, and those who are on
  vacation. There are all kinds of hotels to serve
  these specific markets. Fancy hotels, youth
  hostels, camping grounds, motels, and elder
  hostels are some of the types of hotels that you
  could decide to build. But no matter what
  you choose, you are going to want to make
  your hotel construction process as easy as
  possible. Here is what you need to know about
  building your hotel.
• Build Your Team
• The first thing you will need to do is bring in
  an expert team. This will usually be a lender,
  architect, and contractor who will be
  working together to support you through
  your decision-making process. Some of your
  decisions will involve how long the construction
  should take and construction financing.
• What Will Financing Look Like?
• The lender will usually use the SBA 504 loan
  program to include all costs of construction.
  When you choose your lender, you will be asked a
  number of questions. This is so the lender can
  check contingency, the scope of work, and any
  permits that might be needed. You will probably
  be asked questions a such as
• Is the property you are building on zoned or
  sub-divided?
• What fees should be paid?
• What are the lengths of time on the zoning and
  permits?
• How long will the construction of the hotel take?
• Will you be hiring qualified inspectors to keep
  an eye on the process?
• What type of hotel is being built?
• Once these questions are addressed, the
  lender will figure out which type of loan
  best suits your needs. They usually require
  some money upfront to look over your drawings,
  planning process, and issue the necessary
  permits. They may even add a few additional
  months to the project in case of any unexpected
  delays. Whenever it is possible, a loan
  should be finalized before any construction
  begins.

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What About My Contractor? It is important
that your contractor has hotel building
experience. There are specific codes and
requirements they must meet for hotels. When it
comes to paying your contactor, you will be asked
how much retainage will be held. Retainage is a
percentage of the contract that the lender holds
back on each request for payment. This ensures
that the contractor will meet their deadlines.
Your lender will then set up a payment schedule
to make sure your contractor is paid in a timely
manner and your contract is being met. With this
information, now you are ready to begin a
successful hotel construction! Article source
http//homelandguild.org/what-to-expect-when-going
-through-hotel-construction/