When applying for a mortgage on your hotel, it is usefull to understand the various analytical tools lenders use to evaluate the size and terms of the loans they are making. Until a few years ago, the preferred becnhmark lenders used was the debt coverage ratio. recently, a new tool called the debt yield ratio came into vogue, which seems to be used by most hotel lenders today. Let's look at both and see how lenders in underwriting loans use them. (Steve Rushmore's June 2011 article for Lodging Hospitality magazine)

About HVS

HVS is the world's leading consulting and valuation services organization focused on the hotel, restaurant, shared ownership, gaming, and leisure industries. Established in 1980, the company performs more than 4,500 assignments per year for virtually every major industry participant. HVS principals are regarded as the leading professionals in their respective regions of the globe. Through a worldwide network of over 50 offices staffed by 300 experienced industry professionals, HVS provides an unparalleled range of complementary services for the hospitality industry. For further information regarding our expertise and specifics about our services, please visit www.hvs.com.