Business Finance
Specialist Hotel & Hospitality Finance
Finance for hotels, restaurants, pubs, leisure and hospitality operations. Purchase, refinance, development and refurbishment. Positioned with lenders who understand hospitality trading.
Typical deal size: Typically £100k – £10m
Overview
Hospitality finance is a specialist area. Lenders assess trading performance, management capability, location and market position differently to standard commercial lending. Choosing the right lender is critical.
Key Benefits
Sector Expertise
Access to lenders with genuine hospitality sector appetite and understanding of operational dynamics.
Trading Assessment
Presentation that aligns with how hospitality lenders assess operations — ADR, RevPAR, covers, wet/dry split.
Flexible Purposes
Purchase, refinance, development, refurbishment and working capital funding structured for hospitality.
Common Scenarios
Hotel Acquisition
Debt funding for hotel purchases including freehold, leasehold and management agreement structures.
Pub or Restaurant Group
Funding for group expansion, individual site acquisition or portfolio refinancing.
Refurbishment & Repositioning
Capital for significant refurbishment projects designed to reposition and improve trading performance.
Working Capital
Seasonal working capital facilities to manage the trading cash flow cycle common in hospitality.
Lender Considerations
What hospitality lenders focus on
Specialist lenders assess sustainable EBITDA, management experience, location quality, competitive positioning and the property's condition. They look at normalised trading, not just headline turnover.
Why standard lenders struggle
High street banks often lack appetite for hospitality assets due to perceived sector risk. Specialist hospitality lenders have different risk appetites and assessment frameworks.
How It Works
Trading Assessment
We analyse the trading performance, asset quality and your operational experience to build the lending case.
Specialist Lender Selection
We identify lenders with genuine hospitality appetite — not generalists who might decline later.
Proposition Preparation
We present the opportunity using hospitality-specific metrics and language that resonates with specialist underwriters.
Completion Management
We manage the process through valuation, due diligence and legal completion.
What Lenders Want to See
3 years trading accounts demonstrating operational performance
Management accounts with KPIs including ADR, RevPAR and occupancy rates
Operator CV showing relevant hospitality management experience
Property schedule including condition, capacity and key lease terms
Business plan if acquisition, including post-completion strategy
Details of existing debt facilities and commitments
Common Reasons Applications Fail
Poor or insufficient trading history for the property
Below-market occupancy rates without a credible improvement plan
CQC or regulatory concerns affecting operational viability
Unrealistic business projections not supported by comparable trading data
Frequently Asked Questions
Most lenders require demonstrable hospitality management experience. First-time buyers can sometimes secure finance if they have a strong operational team or relevant sector background, but this significantly narrows the available options.
Hospitality assets are typically valued on a trading basis (profits method) rather than on a bricks-and-mortar basis. The valuation reflects the sustainable trading profit the property can generate under reasonably efficient management.
Yes, though leasehold properties present additional considerations including unexpired lease term, rent review provisions and the relationship between rent and trading profit. Lenders typically require a minimum unexpired lease term.
LTV for hotel and hospitality assets is indicative only and dependent on circumstances — typically 55–70% of the trading valuation. This varies based on operator experience, property quality, trading performance and lender appetite.
Some specialist hospitality lenders will include refurbishment or fit-out costs within the facility, particularly where the works are expected to improve trading performance. This is typically staged and subject to monitoring, dependent on lender criteria.
Ideal For
- Experienced hotel operators
- Restaurant and pub group operators
- Leisure business owners
- Operators acquiring or refinancing hospitality assets
May Not Be Suitable For
- First-time operators without relevant experience
- Speculative hospitality investments without operational expertise
- Very small café or takeaway operations under £100k
Ready to Discuss?
If your hotel & hospitality finance requirement is complex or strategic, speak to CC Finance.
All finance is subject to status, lender criteria and individual circumstances. Deal sizes shown are indicative of typical transactions.
Discuss a Hotel & Hospitality Finance Requirement
Submit your finance scenario and we will assess how we can help.