Jon, I have clients in the hospitality industry (including Vegas properties - places you've heard of), so I know a little about your type of business. I'm about to write some things that may seem harsh, but their intent to help you move forward.
There are people in the hotel investment world that everyone knows -- and even those guys can't find first mortgage debt capital right now -- at least, not at a loan-to-value ratio and interest rate that would allow them to get the rate of return they need. The reasons are many, but include the fact that most hotel/motel operations have failed to meet cash flow projections since 1999-2000, the industry is anticipating as recession as gas/travel costs rise, the number of suitable properties that are available for acquisition and cost-effective rehabilitation make new construction less attractive, and both wages and utility costs are rising while the rates a property can charge to keep rooms filled is not (meaning profits are being squeezed even more). I know that you're excited and really want to build your place, but this is simply not the best time to do that, and an even worse time to be trying to get someone else's money to do it.
Should you give up on the idea? Absolutely not! You just need to wait until the current conditions change (and they will), AND you need to make very good use of the time you spend waiting. Here's what I mean by that:
You wrote that you're going to run the hotel. Your potential investors will read that and realize that they will never get their money back unless you know how to run a hotel very, very well. You have to show them proof of that up front. Your business plan lists you as the manager. Have you ever managed a hotel and do you have experience hiring and supervising the various skills and crafts involved (housekeeping, maintenance, cleaning, catering, etc.)? If not, you need to do that while you're waiting -- you need industry experience on your resume.
Your post indicates that you are the CFO. Are you an accountant or do you have a degree in finance? No one is going to hand you $4 million of their money unless they know you've properly handled more than that before. If you haven't, and if you don't intend to pursue a career in finance, you need to be networking (here and elsewhere) to find a qualified person who is as passionate as you are about getting into the lodging industry, and then have him/her join the team and serve as CFO.
Your post indicates that you are the VP of Sales and Marketing. Again, what experience do you have here? As much as you need hotel management experience on your resume to prove you can manage people and control costs, you need sales and marketing experience to prove you can bring in customers and revenue -- or you need to find someone for your team who has that experience.
Bottom line, potential investors must believe in YOU and your management team. So spend time now developing yourself and building your team -- so when conditions change, you'll be ready to present a plan that really impresses those potential investors.
Best wishes for success!
