The boutique nature of Ramsfield Hospitality Finance assures that all clients receive individualized attention as well as expert advice. The firm prides itself on providing streamlined and expeditious services, from asset review through approval and closing.

By focusing on the specific needs of every financing arrangement, Ramsfield Hospitality Finance offers customized real estate finance solutions. Though they may primarily involve mezzanine loans, the company frequently assists clients through solutions which combine more than one financing method.

Mezzanine Financing
This hybrid of debt and equity financing is frequently used to finance hotel and resort renovations, expansion and upgrades of current facilities or repositioning of a property. Mezzanine financing loans are generally subordinated to debt and have the advantage of carrying considerably less collateral than an average loan. Further more, Mezzanine financing is very advantageous because it is treated like equity on a company's balance sheet. This makes it easier to obtain additional financing should the need arise in the future.

Bridge Financing
Hotels and resort owners who anticipate having to sell their properties in the near future, can benefit significanly from a bridge loan (or bridge financing). Besides gaining access to much needed funds for renovation and refurbishment work, this mechanism offers a variety of flexible solutions to paying back the loan.

Construction Loans
This financing option is a short-term obligation used for the funding of hotel construction projects. During the term of the loan, the lender makes payments to the builder as the work progresses and the borrower makes interest payments on only the funds that have been disbursed to the builder. Loan-to-value is typically 70 - 75% and the term is less than four years. At the end of the term, borrowers usually replace with a mini-perm or bridge loan until the property is stabilized at which point permanent financing is utilized. Each round of financing typically has lower risk and consequently, lower interest rates.

Debtor-in-Possession Financing
DIP Financing has worked well for many hotel and resort owners working who are working under the Chapter 11 bankruptcy process. DIP financing is unique from other financing methods in that it usually has priority over existing debt, equity and other claims. RHF understands how to shepherd the new loan through the bankruptcy approval process.

Unsecured Subordinated Debt
A hotel real estate owner can take on a secured loan, backing it with collateral. However, Ramsfield Hospitality Finance recognizes that in certain circumstances an unsecured financing option may work better.

There are several benefits to unsecured subordinated Debt. First, collateral backed debt usually carries a higher interest rate than an unsecured loan or other asset-based loan. Secondly, loans that are not secured by assets or equity, are much cheaper in the long run than the potential loss of the real estate asset or the dilution of control that comes from a round of pure equity investment.