Can you help with buying a hotel property or arranging a commercial mortgage?

Short answer: We don’t arrange hotel mortgages, but we can guide and signpost you to specialist, FCA‑authorised providers — and help with non‑property finance around the purchase.

Best Business Loans is an introducer platform that helps UK businesses explore finance options and connect with suitable lenders or brokers. We do not offer loans or mortgages directly, and we don’t process commercial mortgage applications in‑house. However, we can signpost you to independent, FCA‑authorised hotel mortgage specialists on request and support your wider funding needs such as fit‑out, equipment and cash flow.

If you’re acquiring a trading hotel, typical funding involves a commercial mortgage for the property and additional finance for refurbishment, FF&E, and working capital. We can help you prepare for conversations with regulated mortgage brokers and support non‑property finance that complements the acquisition. You remain in control at every step and there’s no obligation to proceed.

What we can and can’t do for hotel acquisitions

We can help you clarify your finance requirements, prepare key information, and be introduced to relevant providers. We can also match you with lenders or brokers for non‑property business finance linked to the hotel operation. We don’t give financial advice, we’re not a mortgage broker, and we don’t approve or arrange regulated mortgage contracts.

Important notice

Any mortgage or secured lending is subject to status, affordability, and independent underwriting by authorised firms. Your property may be repossessed if you do not keep up repayments on a mortgage or any other debt secured on it. All information here is for guidance only and is not financial advice.

How a hotel purchase is usually financed — and how our process supports you

Hotel acquisitions are typically funded with a commercial mortgage for the property and top‑up finance for the trading business. Lenders will look at both the asset value and the hotel’s cash‑generating capacity. Your experience in hospitality, the strength of the location and brand, and trading projections all matter.

Our role is to simplify the discovery phase and introduce you to relevant professionals. We help you save time by narrowing down the options and getting you ready to engage with the right kind of provider at the right moment. It’s fast to get started and free to submit an enquiry.

Typical steps to finance a hotel purchase

1. Clarify your objective: freehold or long leasehold, owner‑occupied or investment, trading or closed site.
2. Estimate total funding: purchase price, taxes, legal, valuation, stamp duty, fit‑out and working capital.
3. Prepare a concise pack: business plan, trading history or projections, management CVs, cash flow forecast.
4. Engage specialists: FCA‑authorised commercial mortgage broker for the property loan; other lenders for FF&E/fit‑out.
5. Progress due diligence: valuation, legal checks, environmental reports, and credit assessment.
6. Compare terms: rate basis, LTV, DSCR covenants, repayment profile, fees, early repayment charges.
7. Complete and drawdown: coordinate timings across the mortgage and any complementary facilities.

Typical timelines and costs

Indicative timelines for a hotel commercial mortgage are often 6–12 weeks from complete application to completion. This can be faster or slower depending on valuer availability, legal complexity, and planning/licensing queries. Expect professional fees for valuation, legal, arrangement, and potentially broker fees, which should be disclosed clearly upfront.

Risks and considerations

Interest rates may be variable and subject to stress testing by lenders. Ensure you model downside scenarios for occupancy, ADR, and RevPAR. Build contingency for refurbishment and seasonality so cash flow remains resilient through the first year of ownership.

What lenders and brokers typically look for in hotel mortgages

Every lender has its own criteria, but hotel property finance tends to be assessed on both asset and trading fundamentals. Strong cash flow, experienced management and realistic projections are as important as the valuation. The more clarity you provide, the quicker decisions usually become.

Common eligibility factors for hotel mortgages

• Experience: Prior hospitality or multi‑site operations is valued, especially for larger assets.
• LTV: Many providers cap loan‑to‑value around 50–70% for hotels, subject to risk, location and brand.
• Affordability: Debt Service Coverage Ratio (DSCR) often 1.25x–2.0x on stressed interest rates.
• Financials: 2–3 years’ trading accounts if available, plus YTD figures; otherwise robust forecasts.
• Security: First charge over the property; personal guarantees may be required for owner‑managed deals.
• Tenure and licenses: Freehold or strong lease terms; licensing and planning status up to date.

Key documents to prepare

• Business plan covering demand drivers, target segments, pricing strategy, and staffing plan.
• Historic trading data (if applicable): occupancy, ADR, RevPAR, EBITDA, and seasonality insights.
• Financial statements: accounts, management information, P&L and cash flow forecasts for 2–3 years.
• Asset and capex schedule: FF&E plan, maintenance backlog, and refurbishment timeline.
• Personal information: director CVs, background, and statement of assets and liabilities.
• Property details: draft heads of terms, valuation instruction, environmental and building reports.

If you’re buying a closed or underperforming hotel, lenders may place more weight on capex and turnaround plans. Highlight stabilisation milestones, marketing strategy, and contingency buffers for slower‑than‑expected ramp‑up. Credible assumptions build confidence in the case.

Funding the hotel beyond the mortgage: fit‑out, equipment and working capital

Even with a commercial mortgage in place, most hotel acquisitions benefit from additional business finance. This can cover refurbishment, FF&E, technology upgrades, and initial working capital. A well‑structured blend can protect cash flow and improve guest experience faster.

Common non‑property finance options we can help you explore

• Fit‑Out Finance: Spread the cost of refurbishment, brand standards, and energy‑efficiency improvements.
• Asset and Equipment Finance: Fund kitchen equipment, laundry, boilers, lifts, gym kit, or IT infrastructure.
• Vehicles & Fleet Finance: Finance guest transport vehicles or maintenance vans.
• Cashflow Loans: Manage seasonality, staffing, and marketing during ramp‑up or shoulder periods.
• Invoice Finance: Useful for conference and events revenue with B2B terms, where applicable.
• Refinance: Restructure existing agreements to improve cash flow once performance stabilises.

These solutions do not replace the property mortgage but can complement it. They are typically quicker to arrange than a mortgage, with decisions based on trading, assets, and cash flow. Our platform helps you compare providers that actively support hospitality businesses.

For a sector overview, see our guide to hotel business loans and the types of funding available for hotels. It explains how different facilities can be combined to support guest experience and operational resilience. Use it to shape your finance mix and timeline.

Next steps, FAQs and compliance information

If you’re exploring a hotel purchase, we recommend preparing a concise information pack and clarifying the full funding envelope. Submit a Quick Quote to outline your needs for fit‑out, equipment or cash flow, and request a signpost to a specialist hotel mortgage broker if you wish. We’ll introduce relevant providers so you can review terms without contacting dozens of firms.

Best Business Loans acts as an independent introducer using AI‑driven matching and a professional network. We don’t guarantee funding or the lowest rates, and eligibility depends on your circumstances. No obligation applies at any stage and your data is handled securely and confidentially.

FAQ: Can you arrange a commercial mortgage for a hotel?

No. We don’t arrange or advise on mortgages. On request, we can signpost you to independent, FCA‑authorised hotel mortgage brokers who may be able to help.

FAQ: What loan‑to‑value (LTV) is typical for hotel mortgages in the UK?

It varies by asset, location, and operator profile. As a broad guide, some lenders work in the 50–70% LTV range for hotels, subject to affordability and valuation.

FAQ: What information should I prepare before speaking to a mortgage broker?

Prepare a business plan, historic trading or forecasts, management CVs, cash flow projections, property details, and an estimate of capex and working capital needs. Clear, complete information speeds up assessment.

FAQ: Can you help with the fit‑out and equipment after purchase?

Yes. We can introduce you to lenders or brokers offering fit‑out, asset, equipment, and cashflow finance tailored to hospitality operators. This runs alongside any property mortgage you agree with a regulated broker.

FAQ: Do you charge customers a fee?

It’s free to submit an enquiry on our platform. If a provider charges fees, they will disclose these directly to you before you proceed.

Compliance and fair‑clear‑not‑misleading principles

We aim to follow UK standards set by the FCA, ASA/BCAP, and Google’s financial services advertising rules. All promotions are intended to be clear, fair and not misleading. Any mortgage or secured lending is arranged only by appropriately authorised firms, and all figures, criteria and timelines are indicative and subject to change.

Your decisions should be based on regulated advice where required, your own due diligence, and formal offers from authorised providers. We do not provide financial advice. Availability of finance depends on your circumstances, status, and provider criteria.

Key takeaways

• We don’t arrange hotel mortgages, but we can signpost you to FCA‑authorised brokers and help with non‑property finance.
• Strong hotel cases combine realistic projections, clear capex plans, and experienced management.
• Expect lenders to assess LTV, DSCR, trading data, and property quality alongside your track record.
• Complement the mortgage with fit‑out, equipment, and cashflow finance to stabilise operations.
• Submit a Quick Quote to get matched with suitable providers for your specific needs.

Ready to explore your options today? Complete a Quick Quote to request an eligibility check for hotel‑related business finance and ask for a signpost to a specialist hotel mortgage broker if required. It’s fast, secure, and without obligation.