Magnuson Hotels increases brand financing capability by 6X
February 5, 2013
Magnuson Hotels, in a loan partnership with Ascentium Capital, just increased financing capability by 6X. Hotel owners needing renovation or hospitality equipment can now qualify for $1.5 Million, up from the original $250,000 limit last October.
The Magnuson Hotels’ lending program has been so successful, the company states, that raising the loan limit was necessary to satisfy the shortage of available hotel funds.
“The lending industry clearly recognizes that Magnuson Hotels’ low cost brands provide global brand recognition along with the immediate liquidity and cash flow needed in this low-growth high-cost economy,” stated Thomas Magnuson, CEO of Magnuson Worldwide.
“Nearly ¾ Billion Dollars in bank loans have already been made to hotels carrying the Magnuson low cost brands,” adds Magnuson.
Magnuson’s pay-per-booking brand platform contrasts with traditional hotel franchises such as Wyndham, Choice, Holiday Inn and Carlson. Traditional hotel franchises enforce gross revenue based fees and brand regulations that can decrease net operating income an average of 30%.
Ascentium Capital specializes in providing financial solutions to open new avenues for growth and profit for small businesses located in the US. Ascentium Capital is backed by Vulcan Capital, the private investment group of Paul G. Allen, and a group of investors led by LKCM Capital Group, LLC (“LKCM”), the alternative investment vehicle for Luther King Capital Management.
About Magnuson Worldwide:
Magnuson Worldwide, headquartered in London UK and Spokane, WA is the world’s largest hotel services organisation. Magnuson Worldwide’s holdings include Global Hotel Exchange, GDS1, Magnuson Hotels, and Magnuson Marketplace.