Hotel loans are provided by a diverse variety of financial institutions and corporate bodies, especially those who are familiar with the hotel industry. Many hotel lenders are conversant with the hotel business and have experts who can review the business plan of the borrower, hotel owner or prospective hotel owner, as the case may be. This ensures that both the borrower and the lender thrash out key issues before any loan agreement is drafted and signed. Hotel loans are provided for different reasons. It may be for the building and financing of a hotel business until profits start coming in, or the renovation of an old hotel and refinancing of the business to increase profits.

Most hotel loan lenders require collateral from the borrower to secure a loan, especially if the loan amount required is large. The basic requirements, such as a viable business plan, credit check and a profit and tax report that apply to any commercial loan, also apply to hotel loans. The hotel loan pre-approval process is now offered online and hotel loan seekers can ensure that they meet the requirements of a hotel loan before actually applying for one. Once the requirements for a hotel loan are met, the loan acquisition process goes on smoothly.

A hotel loan agreement can be modified like any other commercial loan agreement. Hotel loan modifications seek to improve the terms of the loan from the borrowers' point of view. The hotel loan lender may approve a hotel loan modification if it guarantees that the borrower will meet his obligations in terms of the loan repayment plan. Both the lender and the borrower of a commercial loan have to agree to any hotel loan modifications. In cases where the loan lender does not agree to a loan modification, such loan agreement has to be fulfilled by the borrower no matter the odds against them. This is more reason why loan agreements have to be properly scrutinized before being signed by the borrower as such agreements are legally binding.

Whenever you decide to go after a hotel loan, you should look over the loan details carefully to be sure you can meet the requirements. It would be wise to prepare yourself before you approach the lender. All necessary papers and legal documents should be carefully scrutinized. A smart negotiation is also an important fact for the client side. And when you are at the client side, it is you who must meet all requirements before you negotiate with the lender.