Clopton Capital Founder Jake Clopton predicts that hotel financing will increase later this year. Having financed these businesses for over a decade, his knowledge of the industry, looking at the actions Congress has taken, in combination of more people able to get a COVID-19 vaccine, he remains bullish on the strength of the industry.
“A story that has not been told is that there are hotels that did well in 2020 because they were in markets or industries that were not as affected by COVID as others. This year, pent up demand will only continue to rise as the economy improves and people feel more comfortable traveling” said Jake Clopton, Founder of Clopton Capital. “Now that more people are being vaccinated they feel safer going into public spaces and I only continue to see that trend continuing as the weather gets warmer. The key then is to make sure there are hotels for people to stay in, and that they have the capital to hire the people they need to operate and expand.”
Clopton Capital has been giving presentations to hotel trade associations on a variety of financing options that are available. Occupancy rates show that hotels located near beaches and shorelines fared well in 2020, and can still get various loans to expand and prepare for the pent up demand that is out there. Even hotels that were affected by COVID-19 saw an increase in occupancy in the latter half of 2020, making them available for various financing options.
In a recent Expedia Group/Morning Consult consumer poll, almost half of the respondents said they were more comfortable traveling now that a COVID-19 vaccine is widely available, many of whom already had booked a trip. The U.S. Travel Association also showed that travel for leisure will see the most increase in 2021.
“These factors allow for lenders to take a look at hotels and see what they need to operate, because they know traveling will be picking up” Jake Clopton continued. “I’ve been telling hotel operators about Small Business Administration loans, how the Paycheck Protection Program works, and other financing options they can take advantage of, which many of them are applicable for.”
About Clopton Capital
Clopton Capital is a privately owned real estate financing company, which focuses on small to middle market owners and operators of commercial property across the United States. Based in Chicago, Clopton has financed billions of dollars worth of projects over 12 years in the commercial, industrial, multifamily, and hospitality sectors. Funding has covered loans from as low to one-million to over $50 million dollars, with highly competitive rates and terms. With the understanding that real estate is a relationship business, Clopton Capital knows that it is the people who work in the industry that matter most. You can learn more at www.cloptoncapital.com.
About Jake Clopton
Jake Clopton is the Founder of Clopton Capital. With an extensive background in commercial finance and interest rate markets, he serves as the company’s head mortgage broker, personally overseeing each loan that is made, negotiating billions of dollars in real estate loans. Prior to founding Clopton Capital, Jake gained extensive and unique insight into interest rate markets and commercial finance as a Eurodollar futures (LIBOR) trader. With his knowledge, versatility and reliability, his clients keep coming back to him for loans on future projects.