Financial Management in Hospitality

The hospitality industry is fast-paced and over the last few years, it has faced many unprecedented financial challenges. In a world where the economic downturn has become the new normal, hospitality business owners, now more than ever, need to adopt the best practices and processes to effectively manage finances and make informed business decisions backed by financial data.

This guide will provide a comprehensive overview of key financial management aspects in the hospitality industry, including budgeting, auditing, financial tracking, and profit and loss reporting.

It will discuss the importance of each area and provide practical tips and strategies for effective financial management in the hospitality sector for hospitality professionals, managers, and owners who are involved in financial decision-making and want to improve their financial management practices.

4 best practices for hospitality financial management


Knowing how much money is coming in and out of your hospitality business is essential for success. For this reason, budgeting is a key skill and responsibility that all hospitality business owners should understand.

Budgeting is the process of calculating how much money your business has available to spend over a set period. This is often based on financial documents detailing the estimation of income and expenses over the period. Without an effective budgeting strategy, you may run out of money.

To create a business budget, you should utilise any existing data and identify patterns and trends. It is likely that seasons and calendar events have an impact on the performance of your hotel, pub, or restaurant and by analysing this information you can calculate budgets during high and low seasons.

Additionally, you can look for ways to cut costs and implement money-saving solutions to increase revenue and free up cash to be spent elsewhere in the business. This can be achieved by adapting, enhancing, and adjusting your products or services.

When budgeting, you should forecast for months or even years in advance. A budget oversees and plans for much more than just day-to-day operations and should protect you and your business during unforeseen circumstances and expected emergencies.


The term auditing refers to a financial statement audit. A financial statement audit is the process of analysing an important financial document from a company such as a cash flow statement, income statement, or balance sheet. This is usually completed by a financial statement auditor whose objectives are to ensure reasonable assurance that a company is free from material misstatements due to fraud or error.

Auditing is important to provide credibility to a firm and shareholders with confidence that accounts and business performance are true and reliable. Furthermore, auditing improves the credit rating of a business, boosts productivity in operations, and can attract additional stakeholders.

Through this process, auditors can help businesses in the hospitality industry monitor and utilise data including expenses, occupancy rates, and revenue, ensure the company is compliant with regulatory requirements, and identify areas of improvement to allow the business to grow.

Financial tracking

Financial tracking is the practice of analysing spending on a daily basis. This can be achieved by recording receipts, invoices, and business expenses. This process enables you to understand your spending, identify where you can cut costs, and monitor how much of your budget is being spent over time.

This information is typically recorded using accounting software to help hotels and hospitality businesses manage their budget effectively, track income and expenses, create financial reports, and analyse the overall financial performance.

A detailed financial tracking model will consider and include everything from payroll and property maintenance to energy and revenue. This is an effective way of capturing and tracking expenses to improve financial management in a business.

Profit and loss reporting

A hotel income statement, also known as a profit and loss statement, tracks a business’s revenue and expenses to calculate how much profit was earned over a particular period. A profit and loss report for a hotel, restaurant, or other hospitality business should include net sales, cost of goods sold, gross margin, operating expense, and net profit.

Each entry on a profit and loss statement will provide insight into how much money a company has made and spent over that period. This report is then used to assess the operational efficiency of a business and provide shareholders, creditors, and investors with an understanding of how a company manages its resources.

A profit and loss statement is an indicator of a company’s health and is one of the primary documents that will need to be provided when applying for loans or funding.

Financial Management in Hospitality FAQs

What is financial management in the hospitality industry?

Financial planning in the hospitality industry is the process of planning and organizing financial activities and operations of a business. This can be achieved by budgeting, auditing, financial tracking, and profit and loss reporting.

Why is financial management important to hospitality organizations?

Financial management is essential to hospitality organizations for success, growth, and expansion. By carefully monitoring their finances and expenditures, hospitality organisations can achieve their business goals and make informed decisions for the future.

What do you do in hospitality management?

Hospitality management involves overseeing all tasks of managing a hospitality business. This can include but is not limited to overseeing the day-to-day administrative, operational, and commercial activities of the business.

Stewart Hindley UK Hotel Finance and Hospitality Finance Specialists

At Stewart Hindley, we specialise in hotel finance to accelerate the success of your hospitality business. Financing a hotel is often a challenge but the good news is that we can help.

Whether you are new to trade or a first-time buyer with no track record, our specialists with over 20 years of industry experience have established relationships with lenders who will consider new-to-trade hotel operators.

With a proven track record in securing hotel finance for businesses in England, Scotland, Wales and Northern Ireland, we will find the right mortgage for you.

Our processes are clear, and we will help you every step of the way from advising what information you need to provide to liaising with lenders on your behalf.

For more information, get in touch with a member of the friendly team today.

8 Cost Saving Ideas for Hotels

Hotels, like any other business, have several reasons as to why it is important to save money and reduce overheads and outgoings.

Inflation, labour issues, and the rising cost of meeting the needs of modern, tech-savvy consumers are just some of the challenges hoteliers are facing. Saving money and cutting costs while maintaining an excellent customer experience is not easy and is one of the key issues in the hotel world.

If you own a hotel, bed and breakfast, or holiday rental, you may be searching for ways to reduce costs. This guide will mention eight cost-saving ideas that you need to consider to save money in your hotel business.

Why is it important to cut costs?

For hotels, it is important to cut costs to improve profitability, stability, and growth. By saving money, hotels can increase their profits and reinvest those funds elsewhere in the business. This allows hoteliers to improve their cash flow management and create accurate cash flow forecasts for the future.

Cutting costs is often faster and easier than growing revenue and can provide hotels with quicker results.

How can your hotel save costs?

There are a number of different ways hotels can save money and cut costs. Here are some ways your hotel can reduce expenses:

1. Build customer loyalty

Customer loyalty can save hotels money in many different ways. For example, loyal customers are likely to return and repeat business providing you with continual income streams. Additionally, loyal customers are likely to return to your hotel without the need for targeted marketing campaigns.

In this instance, it pays to provide customers with an excellent stay and experience to benefit from future customer acquisition costs, maintain steady occupancy rates, and of course, improve your competitive advantage.

2. Encourage word-of-mouth

Furthermore, loyal and satisfied customers are likely to recommend your hotel and services through positive word-of-mouth reviews. This means your hotel can attract new customers at no additional cost.

3. Optimise working rotas

Optimising working rotas and employee schedules can cut costs by avoiding overstaffing, minimising overtime pay, and ensuring compliance with employment laws. By accurately forecasting seasonal demand, hotels can make informed staffing decisions and save money by avoiding underestimated and overestimating staffing needs.

Additionally, consistent and fair work rotas have the power to engage and motivate employees and reduce employee burnout. Happy employees are much more likely to provide a great service to guests reducing the risk of complaints and negative reviews.

4. Staff retention

Ensuring that staff are not overworked and avoid excessive working hours can help to prevent burnout and reduce employee turnover. In turn, this reduces costs by saving on recruitment, hiring, and training. Onboarding new employees is a costly process. Making sure your current workforce is happy and satisfied helps to retain your team and cut costs.

5. Adopt a good marketing strategy

A good marketing strategy will focus on targeting your target audience. Marketing efficiency avoids overspending on marketing campaigns that are not aimed toward your audience. Using an efficient marketing strategy, your hotel can produce maximum return for minimal cost. This allows you to reduce costs while maintaining optimum results.

6. Limit marketing costs

While marketing is important to attract new customers and improve brand awareness, limiting your marketing costs can save you money. However, reducing your marketing costs does not mean that you stop creating engaging content that resonates with the audience.

In fact, organic and authentic content that you or your employees can produce using a mobile phone and free editing software is proving immensely popular on social media platforms such as TikTok. Thanks to the advancement of social media, marketing no longer requires high costs to get a great return.

7. Utilise your hotel floor space

By utilising your hotel floor space, you can maximise revenue, lower operational costs, and improve the overall guest experience. Efficiently using your floor space allows your hotel to accommodate more guests improving your revenue potential. Similarly, efficient floor space reduces energy, lighting, and electricity consumption further cutting costs to save money.

8. Adopt green practices

Green and eco-friendly practices, such as reducing energy and water consumption, using renewable energy, recycling waste, and sourcing locally, not only help to cut costs but also appeal to environmentally conscious guests.

Sustainable practices are becoming a top priority for hotels as they help to reduce environmental impact while maintaining a comfortable experience for guests.

Frequently asked questions

How can hotels reduce expenses?

Hotels can reduce expenses by building customer loyalty, optimising employee schedules, implementing staff retention schemes, adopting a good marketing strategy, utilising the hotel floor plan, and adopting green practices.

How can I make my hotel more profitable?

You can make your hotel more profitable by analysing and reducing operational costs. This can be achieved by implementing energy-saving appliances to reduce utility bills, negotiating better pricing with suppliers, optimising staff rotas to avoid overstaffing, and delivering great customer experiences to build customer loyalty to secure repeat business.

How do you cut costs in housekeeping?

You can cut costs in housekeeping by encouraging guests to reuse towels to save on water consumption and labour. Additional ways you can cut costs in housekeeping include purchasing cleaning supplies in bulk, effectively scheduling room cleaning, and offering a minimum night stay to reduce cleaning between guests.

What is cost control in hospitality?

Cost control in hospitality is defined as the method of reducing business expenses by managing and analysing financial data. This is the process of reducing business expenses to increase profits and revenue and improve the profitability of a hotel business.

Stewart Hindley UK Hotel Finance and Hospitality Finance Specialists

At Stewart Hindley, we specialise in hotel finance to accelerate the success of your hospitality business. Financing a hotel is often a challenge but the good news is that we can help.

Whether you are new to trade or a first-time buyer with no track record, our specialists with over 20 years of industry experience have established relationships with lenders who will consider new-to-trade hotel operators.

With a proven track record in securing hotel finance for businesses in England, Scotland, Wales and Northern Ireland, we will find the right mortgage for you.

Our processes are clear, and we will help you every step of the way from advising what information you need to provide to liaising with lenders on your behalf.

For more information, get in touch with a member of the friendly team today.

How Do Commercial Remortgages Work?

In the dynamic world of business, financial strategies play a pivotal role in ensuring growth, sustainability, and success. One such strategy that businesses often consider is commercial remortgaging, also known as refinancing. This involves replacing an existing mortgage on a property or asset with a new one, usually with better terms or rates.

In this article, we will delve into the intricacies of commercial remortgages, exploring why businesses opt for refinancing, how it differs from regular remortgages, and the pros and cons of this financial manoeuvre.

Why do Businesses Apply for Refinance Loans?

One of the primary motivations for businesses to consider remortgaging is the opportunity to secure a lower interest rate on their loan. As market conditions fluctuate, interest rates can change, potentially offering more favourable terms, such as extending the repayment period or adjusting the loan structure, than when the original mortgage was obtained. In doing so, companies can reduce their monthly mortgage payments.

Also, as a business’s properties appreciate in value, they accumulate equity. Remortgaging allows businesses to access this equity in the form of additional capital.

The increased liquidity from lower monthly payments or equity can be channelled towards core business operations, expansion initiatives, or even emergency funds, strengthening the company’s overall financial position.

Refinancing can also be used as a means to pay off loans or debts that a business might have accumulated over time. Remortgaging presents an opportunity to consolidate multiple debts into a single loan, simplifying financial oversight and reducing administrative burdens. This consolidation can also lead to cost savings if the new interest rate is lower than the combined rates of the previous debts.

Businesses’ financial needs and market conditions can change over time. Remortgaging provides an opportunity to tailor the loan structure to better align with the company’s current situation. For instance, a business may choose to switch from a variable-rate mortgage to a fixed-rate mortgage for greater stability, or vice versa to take advantage of potential interest rate fluctuations.

How does a commercial remortgage differ from a regular remortgage?

Beyond the most noticeable distinction between commercial and regular remortgages, i.e. that the former is for business-related properties or assets, such as office spaces, warehouses, or retail outlets, while residential remortgages involve personal properties, there are a number of key differences between the two.

Commercial remortgages are subject to different regulations compared to residential ones. Business properties often have unique zoning, usage and legal considerations that make a commercial remortgage more complex than a residential one. Not only this but the underwriting process is generally more intricate for commercial remortgages – lenders assess not only the business’s creditworthiness but also the property’s income potential, market conditions, and business stability.

Other distinctions include shorter loan terms on commercial properties than residential ones and commercial mortgages may have balloon payments, where a significant amount is due at the end of the loan term.

What Are the Pros and Cons of Refinancing?

Pros of Commercial Refinancing

Lower interest rate

One of the most significant advantages of commercial remortgaging is the potential for securing a lower interest rate compared to your existing mortgage. A lower rate can translate into substantial savings over the life of the loan, and the lower monthly payments can provide businesses with the financial flexibility to invest in expansion, research and development, marketing efforts, or other operational needs., freeing up capital that can be directed toward other business initiatives.

Reducing the commercial mortgage term

Refinancing also provides an opportunity to shorten the loan term. While monthly payments may increase in the short term, the business can become debt-free sooner, saving on interest payments and potentially increasing its creditworthiness.

Switching between fixed and variable interest rates

Refinancing allows businesses to switch between fixed and variable interest rates based on their risk appetite and market conditions. Fixed rates provide stability, while variable rates may offer lower initial payments.

Access to equity

Over time, properties and assets may appreciate in value, leading to the accumulation of equity. Commercial remortgaging provides an avenue for businesses to access this built-up equity. This capital can be used to fund renovations, upgrades, expansions, or new investments, further enhancing the business’s potential for growth.

Cons of Commercial Refinancing

While commercial refinancing offers several advantages, it’s essential to consider the potential drawbacks:


While commercial remortgaging can lead to potential savings, there are certain fees involved when it comes to remortgaging, including processing fees, valuation fees and legal fees. In some cases, these costs may offset the potential savings from a lower interest rate or shorter repayment period.

Prepayment penalties

Before proceeding with a commercial remortgage, businesses need to review the terms of their existing loan. Some loans may include prepayment penalties or exit fees, which are charges incurred for paying off the loan early. Refinancing could trigger these penalties, negating some of the potential advantages of the new mortgage.

Extended loan term

While commercial remortgaging can result in lower monthly payments, opting for an extended loan term to achieve this might have its downsides. A longer loan term means paying off the loan over a more extended period, potentially leading to higher overall interest payments. Businesses should carefully assess whether the reduction in monthly payments justifies the increase in interest expenses over time.

Potential impact on credit rating

Applying for a new loan, even if it’s a remortgage, could impact a business’s credit rating. Lenders may perform credit checks during the application process, and multiple inquiries within a short period can temporarily lower the credit score. However, responsible financial management and a strong credit history can mitigate this concern.

Remortgages with Stewart Hindley

Here at Stewart Hindley, we specialise in assisting businesses with their commercial remortgage needs. With over 15 years of experience, we help businesses navigate the complexities of remortgaging, and we constantly track hospitality market remortgage rates, to help you secure favourable terms and achieve your business and financial goals. If you’re considering remortgaging your commercial property, get in touch with a member of our skilled and experienced team who are on hand to help you.

Understanding Commercial Mortgage Rates

Investing in commercial real estate can be a lucrative venture, but it often requires securing financing through a commercial mortgage. One of the most critical aspects of a commercial mortgage is the interest rate, which can significantly impact the overall cost of the loan and the financial feasibility of the project.

In this article, we will delve into the intricacies of commercial mortgage rates, exploring how they work, the difference between fixed and variable rates, the factors that influence rate calculations, and the considerations when deciding whether to fix your mortgage rate.

What is the average commercial mortgage interest rate?

The UK average interest rate for commercial mortgages is, as of August 2023, between 3.5% and 4.5%. However, they can be much higher for certain investments, such as high-risk ventures. We examine the factors that influence interest rates below.

How do commercial mortgages work?

Commercial mortgages are loans specifically designed for purchasing or refinancing commercial properties, such as office buildings, retail centres, industrial complexes, and multifamily properties. These mortgages function similarly to residential mortgages, but they cater to the unique needs of businesses and investors in the commercial real estate market.

Commercial mortgages typically come with longer loan terms and lower interest rates compared to other forms of financing. This provides borrowers with stable and predictable monthly payments over an extended period, making it easier to manage cash flow and plan for the future. Interest payments on commercial mortgages are also often tax-deductible, resulting in lower overall borrowing costs.

Lenders assess several factors before approving a commercial mortgage, including the borrower’s creditworthiness, the property’s value, potential rental income, and the borrower’s financial plan. Interest rates play a pivotal role in determining the total cost of the loan over its term.

Fixed vs variable rates

Commercial mortgage rates can be classified into two main types: fixed and variable.

Fixed Rates

A fixed-rate commercial mortgage offers stability and predictability. The interest rate remains constant throughout the loan term, which can range from 5 to 30 years.

This option is ideal for borrowers seeking a consistent monthly payment, making it easier to budget and plan for the long term. However, fixed rates are often initially higher when compared to variable rates.

Variable Rates

Variable-rate commercial mortgages have interest rates that can fluctuate based on a benchmark interest rate, such as the Bank of England base rate. These rates can change periodically, usually on an annual basis, although it has changed significantly more frequently since December 2021.

While initial payments may be lower than those of fixed-rate mortgages, borrowers face the risk of interest rate increases, which can lead to higher payments over time.

How are rates calculated?

Commercial mortgage rates are determined by a combination of factors, including:

Market conditions

The overall health of the economy, inflation rates, and supply and demand dynamics in the real estate market can influence interest rates.


Borrowers with strong credit histories and financial profiles are more likely to qualify for lower interest rates.

Loan Term

Shorter loan terms typically come with lower interest rates, while longer terms may have slightly higher rates to account for the increased risk to the lender.

Property type and location

The type of property and its location can impact the perceived risk of the investment, which in turn affects the interest rate.

Lender’s margin

Lenders add a margin to the benchmark interest rate to cover their operational costs and profit.

Should you fix your mortgage rate?

Deciding whether to choose a fixed or variable commercial mortgage rate depends on your financial goals, risk tolerance, and market outlook. Consider the following factors:

  • Stability vs. Risk: Fixed rates offer stability but may have slightly higher initial costs. Variable rates provide potential savings initially but carry the risk of rate increases.
  • Market Predictions: If economic indicators suggest that interest rates are likely to rise, locking in a fixed rate could be a prudent choice.
  • Long-Term Plans: If you plan to hold the property for a long time, a fixed rate might provide more certainty over the loan term.
  • Short-Term Gains: If you’re aiming for short-term gains and are comfortable with potential fluctuations, a variable rate could be advantageous.

Commercial mortgages with Stewart Hindley

Here at Stewart Hindley, we provide tailored solutions for businesses and investors seeking financing for commercial real estate projects. With a deep understanding of market trends and borrower needs, we offer a range of mortgage options, including fixed and variable rates, to meet the diverse requirements of clients.

If you’re considering buying a commercial property, get in touch with a member of our skilled and experienced team who are on hand to help you.

Types of Hotel Ownership

Hotel ownership comes in different forms, each with its unique advantages and disadvantages. Understanding the different types of hotel ownership can help prospective hoteliers make informed decisions about their investments.

In this article, we will delve into the four primary categories of hotel ownership: franchised, privately owned and operated, leased, and managed, exploring the characteristics of each ownership type, along with their respective advantages and disadvantages. Read on to discover which hotel ownership model aligns best with your plans and aspirations.

Franchised Hotels

Franchised hotels operate under an established brand, with the owner holding a franchise agreement. This agreement allows the hotelier to use the brand’s name, trademarks, and systems in exchange for royalty fees.


Franchised hotels benefit from immediate brand recognition, leveraging the established reputation and marketing efforts of the parent company; this helps attract customers more easily than starting from scratch. Franchisees also receive ongoing support, including training programmes, operational guidance, and marketing assistance from the franchisor.

Being part of a franchise allows hoteliers to enjoy the advantages of collective purchasing power and economies of scale, and franchisees often benefit from a central reservations system, enabling access to a broader customer base.


While there are many advantages to franchising, there are also some less favourable considerations, such as the high initial investment – franchise agreements typically involve significant upfront fees and ongoing royalty payments.

There is also less flexibility and autonomy as franchisees must adhere to brand standards and guidelines, meaning they may have less freedom to introduce unique concepts or adapt quickly to market changes.

Privately Owned and Operated Hotels

Privately owned and operated hotels are independent establishments owned by individuals or private entities. These hotels have complete control over their operations, branding, and marketing strategies.


Owners have the freedom to create a unique identity and tailor the hotel experience according to their vision; this also means they can swiftly respond to market demands, implement changes, and differentiate themselves from competitors. This often results in privately owned hotels creating a more personal and intimate guest experience.

Because there are no franchisors or management companies to share revenues with, owners retain all the profits earned through their hotel.


Independent hotels may lack the resources and support available to franchised or managed establishments, meaning owners are responsible for all aspects of hotel management, including marketing, reservations, and operational systems. As a result, building brand recognition can be challenging, requiring significant marketing efforts and investments.

Leased Hotels

Leased hotels involve an agreement where the owner leases the property to an individual or entity, who then operates the hotel and assumes responsibility for its day-to-day management.


Owners receive regular rental income without the operational and financial risks associated with hotel management, as the lessee bears the brunt of market fluctuations and economic uncertainties. Leaseholders handle the hotel’s operations, staffing, and maintenance, allowing owners to focus on other investments.


Because of the lease setup, the owner has minimal control over the hotel’s operations, marketing strategies, or guest experience. This means that success hinges on the competency and commitment of the lessee, which may pose risks if they lack experience or encounter financial difficulties and, if the hotel performs particularly well, the owner may miss out on potential profits.

Managed Hotels

Managed hotels involve a contract where a professional hotel management company is hired to operate the property on behalf of the owner. The management company takes charge of day-to-day operations and implements its expertise to maximise profitability and guest satisfaction.


Hotel management companies bring extensive industry knowledge, experience, and best practices to optimise operations and revenue generation. The management company shares the financial risk and responsibilities with the owner, aligning their interests to achieve profitability.

They also often have established networks and relationships with suppliers, travel agencies, and online booking platforms, expanding the hotel’s reach. Furthermore, managed hotels benefit from a pool of trained professionals recruited and supervised by the management company.


Owners relinquish operational decision-making authority to the management company, which may result in a loss of control over certain aspects of the hotel’s operation, particularly if the owners are locked into a long-term management agreement.

Hiring a management company involves additional costs, including management fees, performance incentives, and potential profit-sharing arrangements.

How can Stewart Hindley help?

Choosing the right hotel ownership model requires careful consideration of individual goals, resources, and preferences. There are advantages and disadvantages to each of the approaches explored above and understanding them can help aspiring hoteliers make an informed decision to achieve success in the dynamic and exciting hospitality industry.

Remember, the choice of hotel ownership should align with your long-term vision and business objectives. Whether you opt for a franchise, private ownership, lease, or management, the key to success lies in strategic planning, effective execution, and a commitment to delivering exceptional guest experiences.

If you are looking to move into hotel operations, we can help. We are specialists in hotel finance and have been helping people get into hospitality for over 15 years. Get in touch with us today.

16 Ways You Can Boost Your Hotel’s Midweek Occupancy

While weekends may naturally attract more leisure travellers, tapping into the midweek market can significantly increase your revenue and overall profitability. In this article, we’ll explore actionable tips that hoteliers can implement to boost midweek occupancy rates effectively.

What are occupancy rates?

Occupancy rates are a critical metric that every hotelier should keep a keen eye on. It measures the percentage of rooms in a hotel that are occupied during a specific period, typically calculated on a daily, weekly, or monthly basis. Understanding and optimising occupancy rates are essential for any hotel’s success, and one key area that often requires special attention is midweek occupancy rates.

Occupancy rates represent the heart of a hotel’s performance evaluation. They offer a clear picture of how well a hotel is utilising its available room inventory. The formula to calculate occupancy rate is straightforward:

Occupancy Rate = (Number of Rooms Occupied / Total Number of Rooms) * 100

For instance, if a hotel has 200 rooms and 160 are occupied on a particular night, the occupancy rate for that night would be 80%.

Why do high occupancy rates matter?

High occupancy rates mean that a hotel is selling more rooms, which directly impacts its revenue potential. Increasing occupancy rates, especially during traditionally slower periods like midweek, can significantly boost overall revenue and profitability. Occupied rooms also mean more guests using on-site amenities such as restaurants, bars, spa services, and room service. Increased ancillary revenue from these services further bolsters the hotel’s overall financial health.

Hotels with consistently high occupancy rates are often perceived as more successful and desirable by potential guests. Positive word-of-mouth and online reviews from satisfied guests can attract even more visitors, leading to a positive feedback loop for future bookings.

High occupancy rates allow hoteliers to gather more data about their guests, enabling them to better understand their preferences, behaviour, and booking patterns. This information can be used to tailor marketing strategies and offerings, thus attracting more guests during the midweek.


Why Midweek Occupancy Rates Deserve Special Focus

The focus on midweek occupancy rates is crucial due to the characteristic fluctuations in demand that occur during the week. Tapping into the midweek market presents a tremendous opportunity for hoteliers to optimise their occupancy and revenue streams.

In the following sections, we will delve into actionable tips that hoteliers can implement to boost midweek occupancy rates effectively, ensuring a thriving and successful hotel business throughout the week.

Ways to improve your midweek occupancy rates

There are many ways you can boost your midweek occupancy rates, from tailored marketing to enticing packages and working closely with local businesses.

Targeted marketing

Target midweek travellers in your marketing

Target the corporate traveller segment by offering amenities and services tailored to their needs. Fast and reliable Wi-Fi, business centres with printing facilities, meeting rooms, and shuttle services to nearby business districts can make your hotel an appealing choice for professionals travelling during the week.

This isn’t just limited to business travellers though, think about how you could attract retirees looking for good deals. This could include early bird specials in your restaurant, partnering with coach trip companies and highlighting the attractions near your hotel that would interest an older audience.

As well as business travellers and retirees, you might also consider attendees of nearby trade shows, conferences, theatre shows and festivals. Placing adverts with the exhibition centres and theatres, or running certain deals with these providers, can boost your midweek occupancy.

Engaging in social media campaigns

Create captivating social media campaigns specifically targeting midweek travellers. Use stunning visuals, and user-generated content, and share testimonials from satisfied midweek guests to build excitement and encourage bookings.

You could also run a competition with a midweek break as a prize – while the winners won’t pay for their stay, you’ll gain exposure and increase the likelihood of other people booking midweek breaks.

Personalised email marketing

Leverage your customer database to send personalised email campaigns to your guests. Segment your email list based on past stay history or preferences and offer enticing midweek deals tailored to each segment. Encouraging repeat visits from previous midweek guests can be a lot more successful and efficient than attracting new visitors.

Loyalty and referral programmes

Implement a loyalty programme that rewards guests for midweek stays. Offer exclusive perks, such as room upgrades, welcome amenities, or bonus loyalty points, to encourage repeat midweek bookings. Additionally, incentivise guests to refer friends and family for midweek stays through referral programmes.

Packages and policies

Tailored midweek packages

Create exclusive midweek packages that cater to the needs and preferences of potential guests. While you can run a discount on midweek rooms, you could also try introducing specials and packages that include something extra for the same price, such as complimentary breakfast, spa treatments or local activity vouchers.

Flexible check-in/check-out policies

Flexibility in check-in and check-out times can be a game-changer for midweek travellers. Offer the option for early check-ins and late check-outs whenever possible, as it allows guests to maximise their stay, especially those with tight schedules or early morning/late-night flights.

Maximise your weekend visitors

Encourage your weekend guests to stay an extra night on either side of their trip when they book, for example offering a 10-20% discount for arriving on Thursday night instead of Friday night, or staying until Monday instead of Sunday so they can fully relax and enjoy the area or your hotel’s amenities.

Working with industry

Participate in industry events

Attend relevant industry events and trade shows to network with potential clients and corporate travel managers. Establishing strong connections within the business travel community can lead to increased midweek bookings through corporate partnerships.

Collaborate with local businesses

Forge partnerships with nearby businesses, such as event venues, conference centres, or local offices. Offer special rates and exclusive deals to attendees or employees, making your hotel the preferred choice for midweek stays.

You can also make contact with estate agents; people looking to move into the area may not have anywhere to stay and would like to spend some time exploring their potential new town.

Rent out your space

Invite businesses to use your conference rooms for networking events, product launches or other corporate gatherings; these events are often held during midweek evenings and attendees may prefer to spend the night at your hotel instead of driving home.

Off-peak events

Unique midweek events

Organise midweek events or workshops that align with your hotel’s theme and target audience. These could include cooking classes, wine tastings, art exhibitions, or wellness workshops. Such events can attract attendees who may choose to stay at your hotel for added convenience.

Highlight off-peak perks

Promote the advantages of midweek stays to your target audience. Emphasise the tranquillity and reduced crowds at nearby attractions, making it an ideal time to explore the area without the typical weekend rush.

How can Stewart Hindley help?

As specialists in hotel finance, we have been helping people get into the hospitality industry for over 15 years and can start you on your way to opening your own hotel. Get in touch with us today.

Bed and breakfast and hotel mortgages when base rate is high

Is it worth getting a commercial mortgage at a high Bank of England base rate?

If you’ve been considering buying a quality bed and breakfast or a hotel, believe it or not, now is not the time to flinch at the Bank of England Base Rate (BoE BR) increases, in fact this should be seen as a rare and unique opportunity to purchase your dream lifestyle hospitality business.

5% used to be a normal and competitive interest rate for hospitality

Although BoE BRs are at a recent all-time high, they are still relatively low in comparison to the pre-financial crash back in 2008, when the BoE BR was 6%, at the time this rate was the norm and reasonably competitive.

The current prevailing rate of 5% can in this context still be seen as reasonably competitive and importantly this didn’t prohibit people buying businesses back in the day.

Interest rates are more realistic in 2023

It is only since the financial crash of 2008 that we’ve seen BoE BRs plummet to near zero and which in-turn led to an unprecedent rise in business values, because cheap money was readily available, supported by the Bank of England’s policy of quantitative easing and latterly the financial support offered by the UK Government to businesses during and post pandemic.

Despite the ups and downs of Base Rates, Lenders who are considering lending to people requiring commercial mortgages have always factored in potential rises in BoE BRs to ensure that their loan servicing was secure, even if BoE BRs increased to 12% which is a doomsday scenario.

On a positive, the increase in Base Rate to 5% has led to more realistic pricing of hospitality and leisure businesses, as there is a real perception out there that these increases will make borrowing money more expensive, which it indeed will.

Cost of borrowing offset by reduction in market pricing

Conversely, the increased cost of borrowing will be off-set by a reduction in market pricing, especially so in the hospitality and leisure sectors that are prone to discretionary expenditure, so on balance, you’ll not be overly disadvantaged by higher BoE BRs, when buying a hospitality or leisure business.

You might ask why this is the case, the answer is simpler than you might think: vendors generally sell their hospitality and leisure business for a variety of reasons, retirement being the most common, followed by death, divorce and debt.

As a consequence, business owners who want a rapid exit with an expeditious sale are very concerned that the increases in BoE BRs have caused market uncertainty, with commercial mortgage debt being considered as unaffordable by many prospective purchasers, when in fact debt is still comparatively cheap.

Hotel and Bed and Breakfast purchase prices discounted by up to 20%

To counter these concerns, vendors are turning to discounting the guiding price of their businesses for an expeditious sale, sometimes by up to 20% or more, which wouldn’t have even been considered by the vendor or by their sales agent some 18 months ago.

So how can you take advantage of this unique and limited opportunity before the market corrects itself and prices of hospitality and leisure businesses return to pre-BoE BR increase norms.

Specialist commercial mortgage brokers can help

Quite simply, you need to engage with a firm of specialist hospitality and leisure brokers, such as Stewart Hindley, who have the sector expertise and knowledge to provide a funding solution that ticks the lenders’ boxes and one that is affordable at the current BoE BR.

Stewart Hindley can provide funding solutions over longer terms, ensuring that your loan repayment are affordable at the current BoE BR, with options like interest only payments and capital repayment holidays, to off-set the current high cost of borrowing until Base Rates reduce, as well as seasonal payments to improve cash flow and debt servicing.

The future of base rate hikes in 2023

Looking to the future, BoE BR are predicted to reduce to circa 2.5% by the 2nd Qtr. of 2024, so the hike in Base Rates will be short lived and will result in businesses returning to more robust market pricing in the 2nd Qtr. so, there is a limited window of opportunity to realise your dream of owning your own life style Bed & Breakfast or Hotel.

In summary, Stewart Hindley can not only secure the most competitive commercial mortgage debt for you, but also manages all aspects of the debt raising, ensuring that you are not over paying for your business purchase and that your debt is affordable even if Base Rates increase in the future

To hear more about how Stewart Hindley can help you with a commercial mortgage to buy your life style business, get in touch

Types of Commercial Properties

In the vibrant and dynamic world of business, commercial properties serve as the beating heart of various industries. Whether you are an ambitious entrepreneur starting a new venture or an established business owner looking to expand, understanding the different types of commercial properties available in the UK is crucial. In this article, we will explore the diverse range of commercial properties and provide valuable insights to help you choose the right property for your business needs.

What are the different types of commercial properties?

Commercial properties can be classified as either full-commercial or semi-commercial.

Full commercial properties refer to properties that operate completely commercially, such as offices, warehouses, dental surgeries, factories and guest houses. Semi-commercial properties, also known as mixed-use properties, are used for residential as well as commercial purposes, such as flats above a row of shops.

Commercial properties can also be grouped based on what kind of activities they’re used for, such as offices, industrial, retail, leisure and healthcare.

Office Spaces

Office spaces are the backbone of professional services, administrative operations and corporate environments. They come in various sizes and layouts, from small offices in shared workspaces to large, purpose-built corporate headquarters.

Key considerations when selecting an office space include location, accessibility, amenities and parking facilities.

Industrial Units

Industrial properties are tailored to meet the needs of manufacturing, warehousing, logistics and distribution sectors. These properties are characterised by their large floor areas, high ceilings, loading bays and proximity to transportation networks.

Because industrial units are essential for businesses involved in production, storage and the movement of goods, location, transportation links, accessibility for heavy vehicles and the availability of storage facilities are vital factors when choosing an industrial property.

Retail Establishments

Retail properties are where commerce and consumers converge. They encompass a wide range of premises, including shops, showrooms, shopping centres and high street stores. The UK boasts a rich tapestry of retail spaces, from small independent boutiques to large shopping malls.

When selecting a retail property, factors such as footfall, demographics, competition, parking and accessibility should be taken into account. The location should align with your target audience and the nature of your products or services.

Leisure Facilities

Leisure properties cater to businesses in the entertainment, hospitality and leisure sectors. These include hotels, restaurants, pubs, cinemas, fitness centres and recreational venues.

Considerations when choosing a leisure property include location, accessibility, proximity to amenities, parking facilities and the potential for footfall. Understanding the target market and their preferences is vital for success in this sector.

Healthcare Properties

Healthcare properties, encompassing hospitals, clinics, medical offices, dental practices and care homes, play a crucial role in delivering medical services to the community. These properties must meet stringent regulatory standards and provide suitable infrastructure for medical professionals and patients.

Factors to consider when choosing a healthcare property include location, proximity to other healthcare providers, accessibility, parking and compliance with regulatory requirements.

Choosing the Right Property for Your Business

Choosing the right commercial property for your business requires careful consideration of various factors. By thoroughly evaluating your needs, conducting market research, seeking professional advice and assessing the property’s suitability, you can make an informed decision that sets the stage for future success. Consider the following factors when making this important choice:


Ensure the property is conveniently located for your target market, employees and suppliers. Accessibility to transportation links and proximity to amenities should also be considered.

Size and Layout

Assess your current and future space requirements to ensure the property can accommodate your business’s needs. Consider office space, storage areas, customer areas and production facilities.


Determine a realistic budget for purchasing or leasing a commercial property. Consider not only the upfront costs but also ongoing expenses such as rent, maintenance, insurance and business rates.

Infrastructure and Facilities

Evaluate the existing infrastructure and facilities to determine whether they meet your business requirements, for example, loading bays, secure access or refrigeration units.

Legal Considerations

Seek professional advice from solicitors or commercial property experts to navigate legal aspects such as lease agreements, licenses and permits and to ensure compliance with local planning and building regulations.

Future Growth Potential

Consider the scalability and flexibility of the property. Will it accommodate your business’s growth and expansion plans? Assess the potential for alterations, extensions or additional space if needed in the future.

Market Research

Conduct thorough market research to understand the demand and competition in the area. Identify if there is a suitable customer base for your business and analyse the potential for growth and profitability.

Due Diligence

Before finalising any property, conduct thorough due diligence. Inspect the property for any structural issues, assess its condition and review utility systems, such as plumbing and electrical systems.

How can Stewart Hindley help?

As commercial property experts, we can provide you with valuable insights and options when it comes to buying your first or next commercial property. Get in touch to find out how we can help you.

Most Popular Types of Beer in the UK

Beer holds a special place in British culture, weaving through the nation’s history and social fabric.  Many breweries have been producing beers for generations, preserving traditional recipes and techniques. Brewer and pub chain Greene King dates back to 1799 and offers a range of popular beers, John Smith’s started in 1852 and produces the highest-selling bitter in the UK and relatively new craft beer brewer Brewdog has made a huge name for itself in less than two decades.

Festivals and events dedicated to showcasing beers, such as the Great British Beer Festival, Oktoberfest-inspired festivals and ale trails, celebrate this heritage and attract enthusiasts from around the country. These gatherings showcase the diversity of British brewing and allow people to sample a wide range of beers.

Beer also holds its own place in British cuisine: traditional pub fare, such as fish and chips, bangers and mash and steak and ale pie, is often complemented by a perfectly matched beer. From light lagers to robust stouts, beer enhances the flavours of the food, creating a delightful dining experience.

What are the most popular types of beer in the UK?

Research from Statista found the most popular beers in the UK are Lager (71%), IPA (46%), Pale Ale (39%), Bitter 39%) and Stout (30%) – these are the beers every pub owner will want to keep a steady supply of to ensure happy and returning customers.


Lager, a refreshing and smooth beer, is widely consumed throughout the UK and is characterised by its pale colour, light-to-medium body and clean, crisp taste. Lager is typically fermented at lower temperatures, resulting in a smoother and less fruity flavour profile.

The popularity of lager shot up in the UK during the latter half of the 20th century, becoming a go-to choice for many beer enthusiasts. Popular lager brands among British drinkers include Carling, Stella Artois and Foster’s.

IPA (India Pale Ale)

Originating from the British Empire’s colonial past, India Pale Ale (IPA) is a beer style renowned for its hop-forward character and strong bitterness. Historically, IPAs were brewed with extra hops and higher alcohol content to withstand long journeys from Britain to India during the 18th and 19th centuries.

Today, IPAs in the UK come in various iterations, ranging from classic British-style IPAs with floral and earthy hops to American-inspired IPAs with bold citrus and tropical fruit flavours. Examples of popular British IPAs include BrewDog Punk IPA and Beavertown Gamma Ray.

Pale Ale

Pale Ale, a staple in British brewing, balances the malt-forward character of traditional ales and the hop bitterness found in IPAs. Pale Ales differ from IPAs in that they have more body and a medium intensity while IPAs are drier in the mouth and have a more pungent aftertaste. It features a moderate hop profile, offering a pleasant blend of floral, fruity and earthy flavours.

The colour of pale ales can vary from golden to amber and they have a malty backbone. Notable examples of Pale Ales include Fuller’s London Pride, Timothy Taylor’s Landlord and Adnams Ghost Ship.


Bitter is an iconic beer style that holds a special place in British hearts. It is known for its distinctively hoppy and bitter taste, often accompanied by a caramel or biscuit-like maltiness. As well as ordinary bitters, punters can also opt for stronger versions like best bitters and extra special bitters (ESBs).

Often served on a cask, bitters have a unique and more complex flavour experience. Noteworthy bitter brands include Fuller’s ESB and Greene King IPA.


Stout, a rich and dark beer style, has a significant following in the UK. It boasts a robust malt profile, offering flavours of roasted coffee, chocolate and sometimes even hints of dried fruit. With its velvety texture and full-bodied nature, stout is a popular choice for those seeking a more intense beer experience.

Perhaps the world’s most renowned stout, Guinness, has become synonymous with the style. Other notable examples include Samuel Smith’s Oatmeal Stout and Fuller’s London Porter.

Interested in owning your own pub?

If you are interested in running your own pub, Stewart Hindley can help. We are specialists in helping people realise their dreams of owning their own pub by building pub mortgage and finance applications. Get in touch to find out how we can help you on your pub ownership journey.

What To Consider When Buying a Pub

Buying a pub can be incredibly exciting, but it also requires careful consideration and thorough research. Whether you’re a seasoned entrepreneur or a first-time buyer, understanding the key factors involved in acquiring a pub is crucial.

Do your research

Understand the industry

Before delving into the specifics of buying a pub, it’s essential to gain a solid understanding of the industry.

Understand the local pub market by studying the competition. Identify the types of pubs in the area, their target markets and their unique selling propositions; assess the demand for pubs in the location, demographic trends, and any potential untapped markets.

You also need to know about the target customer base for the pub. Understand their preferences, demographics and spending patterns. Analyse the existing customer base of the pub you intend to buy and determine if it aligns with your target market.

Check any relevant legal and regulatory requirements for running a pub in your planned area. This includes licensing requirements surrounding alcohol, food, music and other entertainment. Before you make any big decisions, identify any potential restrictions or limitations imposed by local authorities that may impact the pub’s operations.

As well as the above, it’s handy to follow industry publications and join relevant professional associations to understand emerging trends and consumer preferences. This knowledge will help you make strategic decisions.

Assess the pub’s potential

When investigating a pub, you need to look beyond its current state and envision its potential – consider the size, layout and overall condition of the premises. Assess the pub’s existing customer base and any potential for growth or diversification, and look for opportunities to introduce unique offerings, improve efficiency, and enhance the customer experience to maximise the pub’s potential.

You’ll also need to evaluate the location of the pub and its suitability for your target market; assess foot traffic, parking availability, public transport options and any future development plans in the area that may impact the business.

Assess the reputation of the pub within the local community. Look for online reviews, social media presence and customer feedback. Consider engaging in conversations with the current owner, staff or regular patrons to gain insights into the pub’s reputation, strengths and weaknesses.

Financial considerations

Owning a pub can be a profitable venture if managed effectively. However, profitability can vary significantly depending on several factors, including location, target market, competition, operating costs and the quality of offerings.

The financial investment required to buy a pub is often significant; you should explore various funding options, including personal savings, bank loans or partnerships. Prepare a solid business plan that outlines your vision, financial projections and potential return on investment to present to potential lenders or investors.

The financial elements in your business plan should be comprehensive and include the historical financial statements of the pub (if available), evaluate revenue sources (such as food, beverages and events), analyse the cost structure (including rent, utilities, staffing and inventory), and project potential revenues and expenses.

Due diligence and legal matters

Perform thorough due diligence before committing to a pub purchase. Review financial records, licenses, permits, and any outstanding legal issues. Engage a qualified attorney and an accountant specialising in hospitality to ensure compliance with legal and regulatory requirements. Understand the terms of the lease or freehold agreement and evaluate any associated costs or restrictions.

How can Stewart Hindley help?

If you’re thinking about buying a pub, get in touch with a member of our skilled and experienced team who will help you find the ideal pub for you.