Does Delta Hotels By Marriott have sample mezzanine loan documents?
Delta_Hotels_By_Marriott Franchise · 2025 FDDAnswer from 2025 FDD Document
Because we generally do not make mezzanine loans and they are subject to the unique financial terms related to your hotel, we cannot determine in advance the key terms of any such loan we may choose to make, such as the amount, the annual percentage rate, the term of the loan, the number and amount of the payments, the type of security required for the loan, personal guaranty requirements, and default provisions. We may sell or assign any interest we have in any promissory note you execute in our favor or any loan we may advance to you. We do not have sample mezzanine loan documents. Those documents, including the intercreditor agreement between your primary lender and us, will be determined at the time of loan origination.
Source: Item 10 — FINANCING (FDD pages 82–101)
What This Means (2025 FDD)
According to the 2025 FDD, Delta Hotels By Marriott does not have sample mezzanine loan documents. While Delta Hotels By Marriott may, under limited circumstances, offer mezzanine loans, the specific terms are unique to each hotel and determined at the time of loan origination. These terms include the loan amount, annual percentage rate, term, payment schedule, security requirements, personal guaranty requirements, and default provisions.
Because the terms of mezzanine loans are highly individualized, Delta Hotels By Marriott cannot provide standardized sample documents. The documents, including the intercreditor agreement between the primary lender and Delta Hotels By Marriott, are created at the time the loan is originated.
Prospective franchisees should be aware that securing financing, including mezzanine loans, is subject to various factors such as market conditions, the franchisee's financial situation, and the specific requirements of the hotel project. The FDD does include sample financing agreements in Exhibit Q for informational purposes, but these do not include mezzanine loan documents.