When it comes to securing hotel finance and fulfilling your dreams of running a successful and profitable hotel, there are a number of different finance options available.
Running a hotel opens up a host of exciting opportunities, allowing you to provide a unique, enjoyable and comfortable stay for your guests. Running a hotel can also be profitable, providing you invest in the right things.
But, to bring the vision of your hotel to life, you’ll first need to secure the necessary finance.
What is hotel finance?
Hotel finance refers to the funds you’ll need to invest in your hotel and get your business off the ground. This type of finance is designed to support the plans you have for your hotel and provides you with the cash you need to make your business a success.
As with any type of finance, there are a number of different hotel finance options available, including commercial mortgages and business loans for hotels.
However, in order to obtain funding for your business venture, you will need to present a robust and credible business plan to your lender, along with a sound financial model, a targeted marketing plan, and feasibility reports. This will help your lender to feel confidence in your ability to be able to pay the loan back.
What options are there for financing my hotel?
Commercial mortgages for hotels
Just like residential mortgages, commercial mortgages for hotels allow you to borrow the money you need to buy your hotel business and pay it back over an agreed term.
Many lenders are happy to provide commercial mortgages for hotels so it is important to shop around to find the right deal for you. This is where a commercial mortgage broker can be incredibly helpful.
Keep in mind that deposits for commercial properties are a lot higher than residential properties, with lenders usually asking for between 30 or 40 percent of the total value of the hotel.
Business loans for hotels
Business loans are another option for financing a hotel, whether you’re expanding, renovating, or just starting out.
Providing an invaluable source of income when you need it the most, business loans for hotels are available from a range of different lenders. Again, the loan that is right for you will depend on your individual financial circumstances.
Any kind of hotel business can apply for a business loan, but the rates and terms will vary depending on your circumstances. You should be aware that you will be expected to present your business plan, projections, financial forecast and more when applying for a business loan for your hotel.
Why choose Stewart Hindley for your hotel finance?
If you’re considering buying a commercial property, such as a hotel, it’s important to talk to someone experienced in the sector to ensure that you are aware of all the funding options available to you.
Get in touch to speak to one of our skilled and experienced team. We are always on hand to answer any of your queries regarding commercial mortgages for hotels.