Financing for Hotel Acquisition

This is a true example of the reason why citizens from other countries want to come to the United States - to attain personal goals in education and business.

Born and educated in India, receiving a BS in Chemistry at Sardar Patel University, this entrepreneur received a BS degree in Chemical Engineering at Indiana Institute of Technology, Ft. Wayne, Indiana in 1971. While living in New Jersey for five years, he worked as a research associate and during that time became an American citizen. In 1978 he had an opportunity to purchase a motel and has stayed in the motel/hospitality business ever since. His analytical skills serve him well because he purchased motels in need of renovation then leveraged those businesses to upgrade to better facilities.

Eventually several corporations were formed for the purpose of acquiring, constructing and operating hospitality facilities. After owning two Econo-Lodges, a Comfort Inn and one Executive Suites hotel, the company wanted to build a larger facility. So in 1999 he met with the SBDC and local IDA to review the financing of a Holiday Inn Express in Dinwiddie County, Virginia. The location of the project under consideration was ideal because of interstate access in a region that has an expanding industrial base as well as an increased growth in the tourist trade.

The SBDC provided assistance with the requisite paperwork, projections and loan application. The SBDC counselor met with the owner several times to review the financial projections and complete the paperwork. The $4.1 million project was delayed because of some negotiation issues and changes in the plan, but the 33,000 square foot, 67-room facility had its grand opening in April, 2003.