Waves Hotel
Non-Flagged Hotel
"I am grateful to Celtic Bank for taking a risk on entrepreneurs. I wouldn’t have been able to do this without them."
– Zahed Kauser, Owner & Operator
The Opportunity
Zahed Kauser works as an electrical engineering manager for a successful global tech company, but his true dream was to be an entrepreneur. He broke into business ownership by becoming a partner in a gas station in 2016. After that, he felt ready to own and operate a business for himself.
So, when a friend told him about the underperforming Waves Motel in the tourist hotspot of Newport, Oregon, Zahed Kauser saw his chance to fulfill this dream. Waves Motel is a 60-room beachfront motel, within walking distance from Nye Beach. But due to poor management and lack of proper maintenance, an otherwise great hotel with ocean views had a low occupancy rate and a 3-rating on Google.
Zahed was confident that with a little TLC and better management, Waves Hotel could become a 5-star hotel. All he needed was the financing to buy it.
The Challenge
Zahed’s previous experience of getting financing as partner at the gas station had left a bad taste in his mouth. The lenders Zahed worked with before lacked transparency and had unfavorable terms and conditions for a first-time business owner. Given that experience, Zahed felt discouraged that he would find a lender to fund this new project that was both transparent and had fair loan terms.
A broker familiar with Celtic’s reputation of fair and transparent business lending practices referred Zahed to the Bank. While other lenders may have been wary of Zahed’s lack of direct industry experience, Celtic found Zahed’s previous management role at the gas station to be applicable experience. This assessment was based on Celtic Bank’s proven record of funding hundreds of hotels and gas station owners nationwide.
These facts, combined with Zahed’s plans to increase revenue by updating the facilities and to boost online reviews with a robust marketing campaign, enabled Celtic Bank to extend an SBA 7(a) loan for the acquisition of the Waves Motel.
The Solution
Since being extended the loan, Zahed has acquired the business and started on improvements. One of the first improvements he made was to update the name and signage to “Waves Hotel.” The new marquee was mounted just weeks after the loan closed.
With planned improvements in furnishings, management and marketing, Zahed is confident that Waves Hotel will have its best season yet.
Quick Look
- $3,740, 000
- SBA 7(a) Loan
- Business Acquisition
- Commercial Real Estate
- Newport, Oregon
- Non-Flagged Hotel
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