In the context of commercial real estate and mortgage lending, a Full Service - Resort Hotel is defined as a premium lodging property that provides extensive guest services and high-end amenities, typically situated in a destination location such as a beach, mountain, or specialized vacation area. Unlike limited-service hotels, these properties feature on-site food and beverage operations, room service, meeting spaces, and recreational facilities designed to keep the guest on the property for the duration of their stay.
From a commercial mortgage perspective, lenders categorize these assets as complex, high-yield, and operationally intensive. The valuation of a Full Service - Resort Hotel is based not only on room revenue but on its Total Revenue Per Available Room (TRevPAR), which includes significant contributions from ancillary sources. Key characteristics include:
Commercial mortgage underwriters view Full Service - Resort Hotels differently than standard commercial assets due to their volatility and sensitivity to economic cycles. Lenders typically focus on the following factors during the loan application process:
While Full Service - Resort Hotels offer the potential for significant appreciation and high cash flow, they are susceptible to discretionary spending shifts. In a commercial mortgage context, these properties are often financed through CMBS (Conduit) loans, bridge loans for repositioning, or specialized hospitality divisions of large commercial banks. The strength of the "barrier to entry" in the specific resort market is a primary factor in securing favorable interest rates and terms.
| Full Service - Resort Hotel | |
|---|---|
| Definition | A Full Service Hotel property subtype typically has a full array of services available to the traveler. The extent of these amenities varies, depending on the type of the hotel/motel (star rating, etc.), particular chain, etc. However, at a bare minimum, the property should offer: on-site restaurant or dining facilities; meeting or banquet rooms; swimming pool; and 24-hour lobby/front desk. Other amenities frequently found in full-service facilities include: business centers; one or more retail shops to serve guests; more extensive health clubs; and transportation to and from airports or other nearby destinations. Floor plans of the guest rooms vary the most of any type of hotel property, from basic guest rooms, to “junior’ suites, to larger suites suitable for VIP parties. This type of property is usually the most susceptible to profitability pressure, due to the fact that there are relatively high operating costs, due to the full service nature of the property, while the same time there is pressure on revenues, due to the fact that the property often competes with limited service properties in close proximity, which can charge lower room rates. This subtype typically ranges from 500-room resorts to 300-room all-suite hotels. Resort hotel properties are characterized as properties that are the destination and/or attraction themselves for travelers. People come to a resort for the resort itself and often for no other purpose. Usually set in locations of significant natural beauty or with other nearby dominant attractions, resorts feature the amenities of a full-service hotel property, often with additional amenities such as various sports facilities and/or swimming pools, manicured grounds and landscaping, special and/or premium entertainment offerings and guest activities of various types. There are usually adequate facilities for meetings and/or conferences, as many business functions are often held at resorts. Resorts are often clustered in close proximity to other resorts. While operating costs tend to be high at most resort properties, room revenues are usually less susceptible to pressure, due to the destination characteristics of the property and the lower sensitivity to price among most of the propertys customers. |
| Type of Word | Noun |
| Click To Hear Pronunciation | |
Fill this form out to find the best commercial loan programs for your needs.
Get a free commercial loan quote. This process does not affect your credit score.
Fernando and Leanne are amazing. I had many small businesses that need refinancing over the years. I have met many Brokers and there is always a catch. ALWAYS!… Use them! Once you do you will work with them forever
- Nirav Patel
If you searching for a great experience Commercial Loan Direct is the place. Leanne took care of me and honestly had the greatest experience. She handled all of my needs in a smooth and timely manner listened and addressed any concerns I had about the process and was very patient. I can be quite a handful at times and Leanne was so professional and kind hearted. I'd 100% recommend this company. Thank you again.
- Vincent Arias
We were in unfamiliar territory when it came to refinancing. Commercial Loan Direct streamlined the whole process for us. Leann connected us with lenders that were the right fit for us. The money and time we saved was so worth it. I highly recommend them
- Rita Pisarski