Zions Bank National Real Estate lending program has reopened for hotels. While the Zion’s National Real Estate platform remained available through the financial crisis, the program was closed for hotels at that time. Zions Bank is now accepting applications for conventional and SBA 504 loans in Utah (where Zions is headquartered) and Idaho. It is anticipated that the program will expand to additional states over time.
Zions National Real Estate lending program is a co-origination platform in which banks and affiliates originate owner-occupied and investment properties utilizing Zions underwriting standards. ValueXpress has participated in the program since 2003 through its affiliate, Country Bank. In the hotel program, the maximum loan amount is $8 million. The maximum combined LTV utilizing the SBA 504 program is 85%. The maximum LTV without an SBA 504 companion loan is 65%. The program is available for newer mid-scale franchised hotels. Loan underwriting is income-tax return based.
“ValueXpress historically originated many hotel and non-hotel loans for the Zions Bank National Real Estate lending program, particularly in 2004-2008,” commented Michael Sneden, Executive Vice President at ValueXpress. “We look forward to the hotel program being expanded to additional states, and we expect to originate a significant amount of hotel loans to complement our CMBS conduit loan business in hospitality.”