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In This Section:
 Allied Member (2005)
Hotel Association of Canada
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Commercial Leasing Group Inc. is please to provide various forms of financing specifically to the hotel industry throughout Canada and the United States.
Our services include:
FF & E Equipment Financing
Categories included in the FF & E Financing Program
Commercial Leasing Group Inc. can facilitate up to 100% lease financing and offer up to a 66 month term thus helping the hotel owner reach revenue stabilization sooner. Below is an extensive list of the equipment that can be leased/financed under our program:
- All case goods except for the wallpaper and the carpeting
- Televisions
- All telephone systems
- Air-Conditioning Systems
- Door Locks
- Security systems
- Micro Fridges
- Restaurant furniture and equipment
- Gym Equipment
- Pool furniture and equipment
- Complete front office business center equipment and furniture
- Commercial Laundry Machines and Dryers
- Ice Machines
- Various Rental Equipment for resorts; skidoos, marine craft, etc.
Note: If there is item and/or category not listed above, please do not hesitate to call our office.
Sample/Case Study of FF & E Financing
Below is a sample of how the lease cost per room/per month is covered by one day's occupancy rate by a hotel guest:
| Number of Rooms: | | 120 Rooms |
| Case Goods cost per room: | | $6700.00 before applicable taxes |
Total Case Goods value:
(120 X 6700.00) | | $804,000.00 before applicable taxes |
| Lease Term: | | 66 months |
Monthly Payment:
(0.02001 X 804,000) | | $16,088.04 plus applicable taxes |
Cost per room/per month:
(16,088.04 for 120 rooms) | | $134.06 plus applicable taxes |
Cost per day/per room:
(134.06 for 30 days) | | $4.46 plus applicable taxes |
Leasing vs. Loan
Assumption: Assuming FF & E amount required by the hotel is $1,000,000.00
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Leasing Structure
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Purchase Structure
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| YEAR 1 |
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$1,000,000 lease
| Lease term: | 66 months |
| Rate factor: | .02001 |
| Monthly: | $20,010 |
| Total annual payment: | $240,120 |
| Total annual expense for income tax purposes | $240,120 |
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$1,000,000 loan or purchase
| Year 1 | $1,000,000 |
| Less 10% depreciation*: | -$100,000 |
| Undepreciated Capital Cost (UCC): | $900,000 |
*in year of acquisition
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| YEAR 2 |
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| UCC from Year 1: | $900,000 |
| Less 20% depreciation: | -$180,000 |
| UCC: | $720,000 |
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| YEAR 3 |
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| UCC from Year 2: | $720,000 |
| Less 20% depreciation: | -$144,000 |
| UCC: | $576,000 |
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| YEAR 4 |
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| UCC from Year 3: | $576,000 |
| Less 20% depreciation: | -$115,200 |
| UCC: | $460,800 |
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| YEAR 5 |
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| UCC from Year 4: | $460,800 |
| Less 20% depreciation: | -$92,160 |
| UCC: | $368,640 |
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| YEAR 6 |
| Expense: | $120,060
(6 months) |
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| UCC from Year 5: | $368,640 |
| Less 10% depreciation*: | -$36,864 |
| UCC: | $331,776 |
*in year of disposition
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| Total lease expense over a period of 5.5 years: | $1,320,660 |
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| Total depreciation expense over a period of 5.5 years: | $668,224 |
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Conclusion: Leasing will generate an additional $652,436 ($1,320,660 - $668,224.00) in off balance sheet expenses thereby reducing the tax burden and increasing the company's equity on the balance sheet.
Comment from Schwartz Levitsky Feldman LLP Chartered Accountants (Brett Starkman, C.A.): Based on the assumption that the FF&E are Class 8 assets under The Income Tax Act of Canada, the depreciation/CCA (capital cost allowances) as calculated above are correct.
Bridge Financing
This financing structure accommodates existing properties which have an upside potential. The bridge loan structure can provide the capital required for property stabilization at floating rate pricing which allows the loan to be re-financed at par (no penalty) once the income is stabilized. Maximum loan to value is 75%.
Lower Electric/Energy Bills by 10% or More, Savings Guaranteed
With our strategic relationship with Granfel Power Inc. and Energy Automation Systems Inc. (a 25-year-old company), Commercial Leasing Group Inc. is proud to offer to the hotel industry an energy savings program that will far exceed expectations.
Bottom Line is Savings
- 10% or more monthly savings
- Savings are guaranteed
- Less maintenance cost, longer lasting equipment
- Equipment, installation and lease financing costs are paid totally out of monthly savings
Eight (8) Steps to Savings
- Initial Visit - Review the last 12 months electrical billings
- Facility Inspection - A walk through to analyze the current electrical system. This analysis is free with no obligation
- Initial Results Presentation - Will provide reliable results showing minimum savings projections. If there is sufficient savings a second proposal will include an in depth facility electrical system audit along with a budget plan to complete the work
- In-Depth Facility Inspection - Technicians will perform a complete facility electrical system audit
- Project Design Contract - If the projected savings are sufficient, we will present a facility design agreement. The agreement carries a 100% SAVINGS GUARANTEE
- Project Proposal - A detailed report showing project savings, secondary benefits as well how the savings will pay any leasing/finance costs (therefore no out pocket monthly expenses)
- Project Installation - This includes the installation of Power Conditioning Equipment, repairs to certain electrical loads and or motors as well as maintenance and upgrades to lighting systems as required.
- Verification of Savings - Performance of all systems are monitored and accurately verified on an on-going basis.
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