How a hostel owner secured a loan to open a second location

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How a Houston hostel owner secured a loan to open a 2nd location, part of her plan to attract travelers of the future once the pandemic is over

, but Wanderstay's occupancy rate hovered between 45% and 50% — compared to 71% in 2019 — which was well above her predictions. These bookings came mostly from out-of-state road trippers and local Houstonian and Texans in need of staycations. Some guests were volunteers, solo-travelers, and students working remotely.

"I knew that if I was going to be prepared to capture those travelers in 2022 and 2023, I needed to look to the future and start working on the second location," she told Insider. Developing your relationship with a lender will build up their trust in you. Mathis recommends reaching out to lenders who already know you and have been following your business."The bank has to trust that you're going to pay your loan back," she said."They have to trust that you're a good business owner."Prepare for a down payment of 10-15% to show the bank your commitment , essentially a down payment on your loan, of at least 10% to 15% of what you plan to borrow.

Mathis' strategy for the hotel is a bit different from her hostel, catered to a slightly older age group of 21 to 38. She's continuing her affordable model with rates under $100 per night, but all rooms will be private.or debt financing, Mathis champions using numbers to state your case. Especially during a pandemic, lenders will want to know how you're doing compared to pre-pandemic levels, as well as outlook once the economy recovers.

 

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