The group I work for owns a multi-property hotel chain in Mexico, which is presently encumbered by a US$100MM+ credit facility with less than optimal terms. We are growing tired of our present arrangement, and actively seeking options for refinancing with a 10-year loan to pay off the existing facility. The trouble is, we're not having much luck with lenders since our collateral is located outside the US. Who among you has worked with someone in the past that was able to accomodate a similar scenario?
International Hotel Financing
Answers
Have you approached the local banks in Mexico.
Several of the banks in Mexico have been purchased by foreign banks (i.e. Scotiabank, Citi). Check to see if any existing relationships, other than your current one, may be interested in expanding their Mexician subs business.
Maybe the bank avenue is not the most convenient under current circumstances. The pension funds in Mexico are looking for this kind of opportunities and there are ways to arrange financing under cheaper terms through them compared to the cost offered by the local banks.
There are still a number of off-shore commercial banks that may have a yen for such a refinancing as well as some non-traditional lenders that I've worked with.
As you might have well discovered, cost ain't everything
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