Commercial Mortgages for Hotels
The Hotel Sector is buoyant and attracting investors, developers and operators to an ever expanding market.
RevPAR (Revenue per available room) growth continues throughout London and Regional UK in 2019/20, albeit at a slower pace. London RevPAR continues to grow despite the rapid rise of additional supply. The larger UK cities have experienced some impact on performance due to the increase of new rooms and hotel products coming online. This continuous supply creates higher pressure on occupancy levels across the UK, however; the Hotel Industry stat’s clearly demonstrate that there’s plenty of room for the newcomers.
Appetite from lenders to fund Hotel acquisitions, developments and refinance projects is strong, with many banks targeting the Sector specifically, allocating many hundreds of millions of pounds for Hotel funding. The appetite from Challenger Banks and emergence of Debt Funds specialising in Hotels has made the market even more diverse. As a result, we have been able to secure longer interest only terms and identify solutions for projects that are everything but 'vanilla'.
Whichever option you have in mind, Christie Finance will help you get the funding you need to purchase or lease the hotel you want.
Hotel loan features
The terms of a commercial loan against a hotel will vary considerably from lender to lender but, as a general rule, the following may apply:
*subject to status
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65% - 100%
LTV, subject to status
Key Factors to Consider for Your Loan Application
When you are thinking about buying a business there are various things that both you and a potential lender will need to consider:
Experience – do you have the right level of experience to run the business? How will you run it?
Performance – how well is the business doing? Is it in a good location? Is there enough profit in the business to be able to repay a loan easily and personally benefit from?
A deposit of 30% or more
Good credit history
Two years' trading accounts and income projections
Strong proposal from Christie Finance
Proof of experience