10 Reasons You Should Upgrade Your Hotel Using GCR Leasing

There is one simple truth in the hotel business –upgrades are a fact of life every few years-- there are no ifs, ands or buts about it.

Using leasing as the preferred financing vehicle for hotel upgrades is a common sense choice and the most widely used option for savvy hotel operators.

Take a moment to review the Top 10 reasons why you should you use leasing to upgrade your hotel.

1. Leasing can help you maintain your flag requirements. Your franchise’s parent company may change your requirements overnight with nearly no notice. Leasing can help you comply without dipping into your existing capital.

2. There are numerous tax advantages to leasing. Perhaps the most important is that leasing allows you to show your lease payment as an expense without showing the equipment as an asset. That means you end up with a lower tax bill.

3. Leasing does not affect the personal credit of the guarantor. That means that your credit score remains the same and you maintain the ability to get a great rate on your home mortgage and credit cards.

4. GCR has been in the hotel leasing business for years. Because we provide the leasing for many hotels across the country, we understand your needs. Your local banker may not handle many hotel properties and may not fully understand the strength of your investment.

5. With the current economic challenges that the travel, tourism and hospitality industries are experiencing, it is critical to find a lender who understands your business, maintains good rates, and offer fast turnaround times on your approval.

6. Leasing your equipment insures that your investment in your FF&E gets paid off while it’s creating profits for you, not in advance or out of pocket. That frees up capital for other business needs.

7. Many hotels experience seasonal peaks and valleys in their number of bookings. This is why it does not make sense to use your cash reserves for equipment expenses. You need the cash on hand to get you through the slow periods. When you lease, the profits of busy times can be utilized to maintain the property during slower seasons.

8. Your reservation/franchise software system can be leased. Software can often be a very large expense when converting your hotel to a new franchise. This software is a necessary expense and is at the heart of any successful operation. Leasing solves the problem of large financial outlays and keeps your costs in check.

9. Equipment and furniture need to be replaced regularly. Yet, it’s never easy to sell used furnishings and storage can be very expensive. When you lease, the equipment is returned at the end of the financing term and you don't get stuck having to unload outdated equipment at a loss!

10. You will be able to keep up with necessary property upgrades on a more regular basis which will make your property more attractive and competitive. It is a proven fact in the hospitality business, that word of mouth travels fast; clean, well-appointed rooms earn not only your customers repeat business but also valuable referrals as well.

Why not take 60 seconds today to find out what leasing options GCR Capital can offer you!

Special note: Also keep in mind that in addition to leasing, whether you’re trying to buy new commercial properties, expanding an ongoing concern, or purchasing another business entity, GCR Capital also provides many types of commercial financing options.