Overview | Address | Programs | Getting Started
Credit Criteria | Benefits | Rates | Questions | Credit Application – Internet
NGPMS Financing Overview | NGPMS Financing FAQ | Credit Application – PDF

BHR Capital

For all hotel mortgage, new construction, take-out, portfolio, full service refinance and conversion financing needs, see the list of financing resources.

These BHRC's financial products are exceptionally competitive and include:

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Small Ticket Leasing for Furniture, Fixtures and Equipment (FF&E) and Standard Room Decor (SRD)

• From $10,000 to $300,000
• 100% financing of FF&E purchases
• "Soft costs" up to 100% of total cost
• Fast credit approval
• Terms from 3 to 5 years
• No points or fees
• Fixed rates

Large Ticket Financing for FF&E, SRD, and Property Improvements

• From $250,000 to $2,500,000
• 100% financing of FF&E and property improvements
• "Soft costs" and property improvements up to 25% of total cost
• Terms from 3 years to 7 years
• No fees, up to one point
• Fixed rate or variable rate
• Structures available to accommodate properties with conduit mortgage loans

Property Management System (PMS) Financing

• From $10,000 to $300,000
• 100% financing
• Terms from 2 years to 7 years
• No points or fees
• Leases or Conditional Sale Agreements

Each of these options has certain advantages and can be discussed with your BHRC representative. The limit on the amount of financing available to you is based on your credit worthiness.

Questions on any of these programs? bhrcapital@ichotelsgroup.com

To apply now: Credit Application – Internet or Credit Application – PDF

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Benefits

Benefits of Leasing or Financing with BHR Capital

• Leasing offers 100% financing
• Conserves capital
• Saves bank credit lines
• Upgrade at a minimal incremental cost
• Generates revenues
• Allows equipment to pay for itself
• No bank compensating balances
• Creates new credit source

• Fixed or variable rates
• Creative structures for both leasing and financing
• Capitalize on time value of money
• Flexible and customized terms for seasonal businesses
• Overcome budget limitations
• Saves on taxes
• Strengthens balance sheet

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Credit Criteria

To help us make a credit decision, we look at the following basic criteria:

Time in Business - You must have been in the hospitality business for at least two years to qualify for any of our standard plans. We offer a special program for those owners who have been in the hospitality business between six months and two years.

Checking Account History - You must have a business checking account with a history of activity which reflects prudent financial management practices. We consider both current and average balances.

Trade References - We prefer at least two references, including your mortgage company and may request an explanation for any extraordinary items.

Personal & Corporate Credit History - In those instances where personal credit information is needed, we look for a favorable credit record. We consider the amount of available credit, as well as overall payment and credit history.

Depending on the size of the transaction, a checklist of documents may also be required.

After receiving all the required information, we can make a credit decision within 2 - 15 business days depending on the size and complexity of the transaction.

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Rates

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How to Get Started

Arranging an equipment lease or financing is fast and easy through BHRC.

If you are applying for an equipment lease, with each approved application, we will send you our simple master lease document for your signature. After you select your vendor(s) we will contact them to arrange for issuance of our purchase orders guaranteeing payment and to arrange for future payment. All vendors are usually paid within three days.

If you have specific questions, you can email or call toll free 1-877-GET-BHRC to discuss your situation with your BHRC representative and determine which financing option is best for your particular need.

To apply now: Credit Application – Internet or Credit Application – PDF

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You select the project or the equipment. BHR Capital provides the financing.

BHR Capital^®
Suite 100
Three Ravinia Drive
Atlanta, GA 30346-2149
770-604-5400
877-438-2472 (Toll Free)
770-604-8639 (Fax)
Email: bhrcapital@ichotelsgroup.com

All financing subject to credit qualification; conditions and restrictions apply. All programs, terms and conditions are subject to termination or change without notice. The registered mark BHR Capital® is licensed from Six Continents Hotels, Inc. (SCH), a member of the InterContinental Hotels Group. No lender or lessor in connection with this program is affiliated with SCH or any of its affiliates. SCH may recover a portion of its initial financial contribution to the programs but does not receive a fee or any other compensation in connection with the programs. SCH does not participate in any financing decision and shall not be liable for any failure to obtain financing, including, but not limited to, denial of any license application or inability to execute a license agreement with SCH.

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Next Gen Property Management System (NGPMS) Financing Overview

A critical component of your Integrated Technology Solution is the NGPMS. BHR Capital® (BHRC) has developed leasing and financing programs that are aggressively priced, easy-to-use, and are designed to be a total turnkey solution. They include the hardware and all of the “soft costs” (installation & travel, training, software and third-party interfaces) associated with the NGPMS.

How to apply
The programs are simple to use. The first step is to complete the BHRC credit application and return it along with a signed copy of the “Estimate of PMS Purchase and Installation” provided to you by your Technical Service Consultant (TSC). This should be submitted no later than 90 days prior to the equipment installation date. Both the credit application and cost estimate can be submitted via facsimile to 770-604-8639. Should you prefer to complete your application electronically, access the Credit Application - Internet OR if you prefer to fax in the application, download and print the Credit Application - PDF . Normally the application can be processed in 24 hours or less. Once approved, you will receive a commitment letter and lease documents specifying all of the terms. When you return the documents, you will need to pay a small documentation fee; you may also be required to make a deposit equal to up to two month’s lease payments.

Considerations
In deciding whether you wish to purchase or lease, be advised that this technology is likely to be refreshed within a three to four year period. If you select a leasing option, you should consider a term of no more than three years. This will allow you the flexibility to upgrade to new technologies and take advantage of new applications without worrying about unamortized balances if you purchase or pre-payment penalties if you lease for longer terms. We have aggressively priced three-year lease programs that have either a $1 buyout, a 10% balloon payment, or a Fair Market Value purchase option at the end of the lease term. Four- and five-year lease terms are also available.

Advantages
Requiring you to be credit-approved through the BHR Capital® program is a financial advantage to you. By financing the equipment, you delay making any payments except the advance deposit for up to four months. No interest expense accrues during this period. And, special leasing options such as $90/90 day, step-up, interval, contact, and seasonal payment programs are also available to accommodate any special circumstances. By 60 days prior to your installation date, your TSC will require you to confirm payment arrangements. If you have opted to purchase the system, payment in full will be due at that time. Should you decide not to proceed with financing at any time prior to signing the lease documentation, you always have the option to make a full up front cash payment for the system.

Why BHR Capital^®?
BHRC's mission is to be the best hotel resource for lease financing for franchisees of InterContinental Hotels Group. BHRC has selected a number of national funding partners for NGPMS and those partners all have dedicated administrators assigned to this program.

Now that you know that our financing programs are a part of the Integrated Technology Solution, we encourage you to select the “Lease/Finance” option when returning your signed cost estimate OR call toll-free at 877-GET-BHRC (877-438-2472) with any questions you may have about these or any of BHRC’s other available lease financing programs.

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Next Gen Property Management System (NGPMS) Financing – Frequently Asked Questions

1. What can be included in the NGPMS financing?
100% of all hardware and all of the “soft costs” (installation & travel, training, software and third-party interfaces) associated with the NGPMS can be included.

2. When should I apply?
Your application should be submitted no later than 90 days prior to the anticipated equipment installation date.

3. What happens when I submit my credit application?
Your application will be forwarded to one of the national funding partners for NGPMS. The process varies with the size of the financing request. For transactions up to and including $150,000, normally you will receive a response within 24 hours. Once approved, a financing specialist will contact you to begin the documentation and funding process. Normally, from approval to funding can be as short a period as 7-10 days. Transactions above $150,000 may take up to 2 weeks to be approved and anywhere from 2-4 weeks to get to funding. Again, a financing specialist will contact you and walk you through the process.

4. How is the interest rate determined?
Interest rates are primarily determined by the size of the transaction, the credit package received, and the total number of properties where you will be installing the new NGPMS. Normally our interest rates at any point in time are tied to a benchmark such as Like Term Treasuries. All of our interest rates are fixed for the lease term.

5. Are advance payments required?
Normally, a small documentation fee and the first monthly payment will be required with the execution of the lease documentation. The actual payments required (first payment, first and last payment, etc.) will be determined at the time of credit review

6. Are there any additional costs or fees?
There are no other costs or fees associated with the program.

7. How long is the term?
You may select lease terms from 3 to 5 years. (See # 9.)

8. When do my lease payments start?
Under the process that has been set up by IHG and IBM (the systems integrator for the hardware, software, installation and training), once you have signed a lease agreement with one of our funding partners, you will not receive an invoice for the monthly lease payments until approximately 30 - 45 days after you have successfully converted to the new Property Management System. There are no interim interest expenses or carrying charges associated with this program.

9. With technology constantly changing, what lease term do you recommend?
Currently, we believe that a 3-year term is appropriate. Be advised that this technology is likely to be refreshed within a three to four year period and some of the hardware may need to be replaced in order for you to take advantage of new technologies and applications. We have three-year programs that can be structured at end of lease term with either a $1 buyout, a 10% balloon payment, or a Fair Market Value purchase option.

10. Are personal guarantees required?
Personal guarantees of at least the principal shareholders are normally required for all equipment financing programs in this industry.

11. Why should I finance through this program rather than pay cash up front?
This program offers the most competitive financing available on a national basis for this type of collateral (heavy soft cost percentage) and size of transaction. The approval and documentation process is both easy and fast. Lease administrators assume the responsibility of coordinating with IBM, IHG and the software vendor to make sure that all invoices are correct and are paid once you have accepted the system. Under this program, you would normally pay only a one month’s deposit approximately 60 days prior to cutover. Additional lease payments would not commence until 60 days after successful cutover. This has the effect of lowering the effective interest rate over 1% versus paying cash 60 days in advance of the proposed cutover.

12. How will my vendors be paid?
Under this program, IBM is acting as the integrator for IHG for the deployment of the NGPMS systems. When you are credit approved by one of our lending partners, you will only need to make an advance lease deposit. No other payments will be required until 30-60 days after you have successfully converted to the new system. IBM will accumulate the vendor invoices and will invoice the lending partner that is financing your transaction. The vendors will then be paid either by the lending partner or by IBM.

13. What if the hotel changes ownership?
These leases can be assumed, provided the new owner(s) can pass a credit check.

14. Are there any special lease options?
There are options for properties that may require payments adjusted for seasonality. There is also an option for a “step lease” where the payments can be lower in the beginning of the lease term.

15. Can I add other equipment such as POS systems to the lease?
Yes, additional equipment such as POS systems, interfaces, additional work stations and training computers can be added at any time during the lease term. Once the level of initial credit approval is reached, a further additional credit approval may be required.

16. Micros Fidelio offers a discount for prepaying 3 years of the annual maintenance; can I finance this cost?
Yes, we encourage you to consider this option. Not only will you receive a discount of approximately 5% off the maintenance cost, but you will avoid any Micros maintenance cost increases, which historically have averaged 5 - 7% per year.

17. What options are available at the end of the lease term?
Most of our leases have the option to buy the equipment for $1 at the end of the lease term and that scenario is outlined on the “Estimate of NGPMS Purchase and Installation” that your TSC provides. There are two other possible lease structures. The first structure is the 3 year lease with a 10% balloon payment at the end of the lease term. This structure has the effect of lowering the monthly lease payment for the 3 year term. The second lease structure is a 3-year lease with a Fair Market Value purchase option. At the end of the lease term, the system can be purchased for the fair market value of the hardware or it can be returned to the leasing company. Normally, the Fair Market Value will be between 10% and 15% of the original hardware costs. This structure also has the effect of lowering the monthly lease payment for the 3 year term.

18. Can I pay off my lease or loan early?
Most of our lenders will allow pre-payment of either a lease or a loan by providing some discount on the total of the remaining payments. The amount of discount will vary depending on the term, whether it is a lease or a loan, and the current rate environment.

19. Are my monthly payments tax deductible?
This will vary depending on whether the structure is a lease or a loan, and, if a lease, the type of lease. In all cases, we recommend that you consult with your tax advisor on this issue.

20. Who do I turn to for warranty service on the equipment financed?
The vendor or original supplier of the equipment will provide all warranty service; the financing company is not responsible. Service and the warranty are handled just as if you paid the vendor(s) directly for the equipment.

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