Down payment & Hotel Development

[Kyle Davis]

Hello BP World-  I'm building a franchised hotel and am currently wondering what people that are in the hotel industry usually use as a down payment.  25% down?  20% down?  My bank that I'm going with will let us go forward with having 20% down (which is 800k FYI).  And I found a local gap lender who will borrow us 150k at 3.25% interest to assist with the down payment.  I obviously know the pros/cons of having higher debt so no need to go into those, but I'm just wondering what other hotel investors are doing.  It's in a smaller market, but limited competition so the feasibility study that was conducted came out good along with the pro-forma.  I could just use some insight as I'm almost there raising all the money needed from private investors.  Thanks!