Hotel & Guest House Funding

Hotel finance and Guest House finance

For the past 30 years we have dealt with arranging funding for the purchase or refinance of Hotels & Guest Houses throughout the UK.

Our clients and the types of hotel they purchase vary widely but the principles for arranging finance remain very much the same whether you are considering a 30 bed plus hotel or a modest seaside B & B.

For experienced operators buying proven businesses it is possible to secure up to 75% of the purchase price, but for some running a smaller hotel or Guest House is as much of a lifestyle choice as it is a business venture. Either way we have great contacts with mortgage lenders who understand what running a Hotel entails.

Hotel finance and Guest House finance

Many of our clients are buying businesses with substantial turnover from accommodation, function and restaurant sales but equally many decide on smaller, easier to run businesses which typically may trade under the VAT threshold.

We have lenders who, for example, appreciate the reasons why the small Hotel or Guest House owner may choose to trade under the VAT threshold, and who takes into account the financial advantages of living from the business, so that when they come to assess the funding requirement they can make a judgment based on an understanding of your business sector.

To help with cash flow they can consider 25 year loan repayment terms and can even offer interest only facilities where appropriate.

Whatever you decide to buy take the opportunity of calling us to discuss what may be available for you.

Case study

Our clients agreed to purchase a 9 bed roomed Guest House which was operated at just under the VAT threshold, trading 8 months of the year.

They had already approached all the major banks but because the accounts reflected the current owners trading style and because they lacked past experience of running a Guest House, they were declined funding.

Once instructed we established that the current owners, to reduce their workload, had outsourced laundry and additional staff had been employed, thereby increasing expenses costs, which had in turn reduced the net profit shown. We worked with our clients to draw up a business plan and to prepare robust financial forecasting to demonstrate to our lenders, the effects of the savings on expenses and the potential, should they choose, of extending the time the business was open.

Based on the business plan and by utilising 25 year funding we were able to secure the mortgage required for our clients to fulfill their dream.

Call Michael or Roger on 01834 849797

National Association of Commercial Finance Brokers

Business Mortgage Solutions is a member of the National Association of Commercial Finance Brokers and is regulated and authorised by the Financial Conduct Authority