Lenders have returned to hotel lending, although they remain reluctant to finance new construction, a new survey by the Hotel and Motel Brokers of America found.

The poll of 25 major lenders indicated a majority prefer to underwrite only refinancing and acquisition programs. About one-third indicated a willingness to finance new construction and said they would lend only to experienced developers who would commit their own money for 25% to 35% of project costs.

Lending under the Small Business Administration program remains popular, the survey said, but loans above $4 million for renovations are difficult to obtain without providing interest rate kickers or participation in refinancing or sale proceeds.

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