Hotel and Hospitality Finance
Hotel and Hospitality Finance UK
Hotel and hospitality finance is a specialist area of commercial lending requiring lenders with genuine sector expertise — the ability to read trading accounts, understand RevPAR and occupancy metrics, and assess the operational risks specific to hospitality businesses. Platinum Global Bridging Finance arranges hotel finance, guest house mortgages, and hospitality property loans from £150,000 to £150m+ across the UK and internationally. No broker fee on facilities of £500,000 or above.
What Is Hotel and Hospitality Finance?
Hotel and hospitality finance covers mortgage and bridging lending secured against hotels, guest houses, bed and breakfasts, serviced apartments, apart-hotels, pubs with letting rooms, and other hospitality assets. Unlike conventional commercial property investment — where a lease provides a predictable, contractual income stream — hospitality assets generate income operationally, with revenue dependent on occupancy, average daily rate (ADR), and RevPAR (revenue per available room).
This operational income characteristic means hospitality assets attract a specialist lender pool. Most mainstream commercial mortgage lenders have limited appetite for hotels and hospitality; specialist lenders, challenger banks, and debt funds provide the majority of UK hotel finance.
Types of Hospitality Assets We Finance
- Hotels — budget, mid-market, boutique, and luxury
- Guest houses and bed and breakfasts
- Serviced apartments and apart-hotels
- Pubs with significant letting room income
- Holiday parks and lodges (specialist assessment)
- Hostels and budget accommodation
- Conference and events venues with accommodation
How Hotel Finance Is Assessed
Hotel lending is assessed on the operational trading performance of the business rather than a simple rental income figure. Key metrics lenders examine include:
- RevPAR (Revenue Per Available Room): The primary performance metric for hotel operations, combining occupancy rate and average daily rate.
- EBITDA: Earnings before interest, tax, depreciation, and amortisation — the adjusted operating profit of the hotel business.
- DSCR: Debt service coverage ratio calculated against EBITDA rather than a simple rental income figure.
- Occupancy history: Minimum two to three years of trading history is typically required, with seasonal analysis for leisure hotels.
- Star rating and brand affiliation: Branded hotels (with franchise or management agreements) often attract better terms than independent properties of equivalent quality.
- Property condition and capex requirements: Lenders assess whether significant capital expenditure is needed to maintain or improve the property.
Lending Criteria for Hotel Finance
| Parameter | Typical Range |
|---|---|
| Loan size | £150,000 to £150m+ |
| LTV | Up to 65% to 70% |
| Term | 3 to 25 years |
| Rate (2026) | 6.5% to 9.5% pa |
| DSCR | 130% to 160% of debt service (assessed on EBITDA) |
| Trading history | Minimum 2 to 3 years typically required |
Hotel Bridging Loans
Where a hotel acquisition requires speed, where the property is under-trading and needs operational improvement before mainstream lenders will consider it, or where refurbishment is required, a hotel bridging loan provides short-term funding. We regularly arrange hotel bridge-to-mortgage transactions — the bridge funds the acquisition and any improvement programme, with the long-term hotel mortgage arranged once trading performance has been established or improved.
For new-build hotel development or significant hotel conversion projects, development finance is the appropriate route, with staged drawdowns against a build programme. We arrange development finance for hotel schemes across the UK and internationally.
Pub Finance
Pubs with significant food and accommodation income are assessed similarly to hotels — on operational EBITDA rather than a simple rental figure. The pub market has its own specialist lender panel, and we work with lenders who understand the sector and actively lend on licensed premises. Leisure bridging loans are available for pub acquisitions requiring speed or short-term funding.
Frequently Asked Questions
Can I get hotel finance if the property has been closed?
A closed or mothballed hotel requires a bridging loan or development finance rather than a commercial mortgage, as there is no trading income to assess. Once the hotel is reopened and trading, a commercial mortgage can be arranged to refinance the short-term facility.
What is the minimum trading history required for a hotel mortgage?
Most lenders require a minimum of two to three years of filed accounts. Some specialist lenders will consider 12 months of trading history where the business has strong RevPAR, a recognisable brand affiliation, or experienced operator management.
Can I finance a guest house or B&B?
Yes — smaller hospitality assets including guest houses and B&Bs are considered by specialist lenders, though the loan size minimum and lender appetite vary. We arrange finance from £150,000 for smaller hospitality assets.
Does Platinum Global charge a broker fee for hotel finance?
No broker fee on facilities of £500,000 or above.
Our Commercial Property Finance Solutions
About Us
Platinum Global Bridging Finance is a distinguished high-net-worth finance broker. We specialize in providing tailored financial solutions, including Property Bridging Finance, Development Finance, Single Stock Loans, Margin Stock Loan, Crypto Finance, Crypto Backed Loans and Commercial Property Finance tailored to meet the diverse needs of our clientele seeking robust financial lending solutions.
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