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In This Section:
FF & E Equipment Financing
Categories included in the FF & E Financing Program
Case Study of FF & E Financing
Leasing vs. Loan
Bridge Financing
Lower Electric/Energy Bills by 10% or More, Savings Guaranteed



Allied Member (2005) - Hotel Association of Canada
Allied Member (2005)
Hotel Association of Canada































































































































































For more information about Granfel Power Inc., visit granfelpower.com

For more information about Energy Automation Systems Inc., visit energyautomation.com
HOTEL FINANCING PROGRAM

Hotel Financing

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:

  1. All case goods except for the wallpaper and the carpeting
  2. Televisions
  3. All telephone systems
  4. Air-Conditioning Systems
  5. Door Locks
  6. Security systems
  7. Micro Fridges
  8. Restaurant furniture and equipment
  9. Gym Equipment
  10. Pool furniture and equipment
  11. Complete front office business center equipment and furniture
  12. Commercial Laundry Machines and Dryers
  13. Ice Machines
  14. 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.

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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

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Leasing vs. Loan

Assumption:  Assuming FF & E amount required by the hotel is $1,000,000.00

Leasing Structure Purchase Structure
YEAR 1        
$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
$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
YEAR 2        
Expense:$240,120
UCC from Year 1:$900,000
Less 20% depreciation: -$180,000
UCC:$720,000
YEAR 3        
Expense:$240,120
UCC from Year 2:$720,000
Less 20% depreciation: -$144,000
UCC:$576,000
YEAR 4        
Expense:$240,120
UCC from Year 3:$576,000
Less 20% depreciation: -$115,200
UCC:$460,800
YEAR 5        
Expense:$240,120
UCC from Year 4:$460,800
Less 20% depreciation: -$92,160
UCC:$368,640
YEAR 6        
Expense:$120,060
(6 months)
UCC from Year 5:$368,640
Less 10% depreciation*: -$36,864
UCC:$331,776
*in year of disposition
Total lease expense over a period of 5.5 years:$1,320,660
Total depreciation expense over a period of 5.5 years:$668,224

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.

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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%.

To receive more information on the above, please submit the following (all fields are required):

Company name:
Name:
Email:
Telephone:
Fax:
City/Province/State:
Cost of project:
Amount required:
Brief Description of Property
      
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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

  1. Initial Visit - Review the last 12 months electrical billings


  2. Facility Inspection - A walk through to analyze the current electrical system. This analysis is free with no obligation


  3. 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


  4. In-Depth Facility Inspection - Technicians will perform a complete facility electrical system audit


  5. Project Design Contract - If the projected savings are sufficient, we will present a facility design agreement. The agreement carries a 100% SAVINGS GUARANTEE


  6. 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)


  7. 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.


  8. Verification of Savings - Performance of all systems are monitored and accurately verified on an on-going basis.

To receive more information on the above, please submit the following (all fields are required):

Company name:
Name:
Email:
Telephone:
Fax:
City/Province/State:
Brief Description of Property
(including average monthly electricity bill)
      
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COMMERCIAL FINANCING
Equipment Leasing : Cash Advance Program : Mortgages (Commercial) : Construction Financing / Takeouts
Hotel Financing : Transportation : Capital Search : Repo Inventory

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Mortgages (Residential)

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