Securing finance can be more challenging if you are planning to open an independent hotel. Chains naturally find it easier because they are established and seen as a more secure bet. This may not always be the case, but lenders can get swayed by plans that are backed by a large brand. When you want to open your own hotel, B&B or guest house, you’ll need to work harder to get loans, but it is certainly possible to do so.
When you first start looking for lenders it is wise to work with a broker. This will dramatically increase the number of options you have to choose from. The brokers will scour the market for you and offer suggestions about which lenders will be likely to meet your needs. This will save you time and put you on the right path to securing hotel finance.
When dealing with lenders, it is important to be clear and honest with them. Building a good relationship is crucial and you should not worry about sharing details of your plans with them. In fact this will help to improve your chance of getting the funding you need.
One thing lenders are concerned about when seeing applications for an independent hotel is that they have failed to attract backing from a chain. Even if this isn’t the case and you intentionally want to build your own brand, they will consider it. To ease this worry you should explain the advantages you will achieve from being independent, in particular the things that will make your hotel unique and attractive.
You’ll need to show lenders your business plan if you want to secure hotel, bed and breakfast or guest house finance. It should be properly presented and include all of the information they want to see. One important component is the marketing plan. This should be detailed and show exactly how you aim to attract guests including how and where you will advertise.
The most critical thing to remember with any hotel project is quality. Lenders will always be more likely to provide funding to projects that offer this in abundance. For independents it is even more important because they won’t naturally have a reputation for quality like many chains have.