Lendus.

Hotel & Hospitality Business Loans

From boutique B&Bs to large hotels, finance your acquisition, renovation, or expansion. Lendus compares 200+ lenders to find the best hospitality finance for your property.

200+ UK lenders
2-minute application
No credit check to apply
FCA-regulated brokers

Typical Range

£25k – £10m

Average Loan

£500k

for hotel & hospitality

Decision Speed

24–48 hrs

for unsecured loans

Eligibility requirements

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Loan types available

Unsecured Business Loan

Rate
7.9% – 24.9% APR
Term
1 – 5 years
Security
No security required
Best for
Room refurbishments, marketing, technology upgrades, and seasonal working capital

Secured Business Loan

Rate
4.5% – 12.9% APR
Term
3 – 25 years
Security
Hotel property (freehold or long leasehold)
Best for
Hotel acquisition, major renovation projects, or purchasing additional properties

Commercial Mortgage

Rate
4.2% – 9.9% APR
Term
10 – 25 years
Security
The hotel freehold property
Best for
Purchasing a hotel freehold, refinancing existing hotel debt, or releasing equity for expansion

Representative example

Borrow £500,000 over 36 months at 9.9% APR (fixed). Monthly repayment: ~£16,110. Rates depend on your circumstances and the type of loan.

Market context

The UK hotel industry generates approximately £22 billion in annual revenue across around 50,000 accommodation providers. UK domestic tourism contributes over £100 billion to the economy, with occupancy rates averaging 72-78% nationally.

Common challenges

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Bad credit?

Several of our 200+ lenders work with hotel & hospitality businesses that have imperfect credit. You may need a personal guarantee or higher rate, but options exist. Checking your options here does not affect your credit score, because we do not run a credit search to match you. A lender will run their own checks only if you decide to apply.

Frequently asked questions

How much can I borrow to buy a hotel?
Hotel acquisition finance typically ranges from £250,000 for a small B&B to £10 million+ for a larger hotel. Lenders usually fund 60-70% of the purchase price via a commercial mortgage, with the hotel property as security. You will need a deposit of 30-40% and evidence that the hotel's net operating income can cover the loan repayments. Key metrics lenders assess include revenue per available room (RevPAR), occupancy rates, and EBITDA. Lendus works with specialist hospitality lenders who understand hotel valuations.
Can I get a loan to convert a property into a hotel or B&B?
Yes, conversion finance is available for turning residential, commercial, or agricultural properties into accommodation. You will need planning permission for change of use (typically to C1 use class), detailed costings from a builder or architect, and a business plan showing projected occupancy and revenue. Lenders will assess the end value of the converted property against the total project cost. Bridging finance can fund the conversion, with a commercial mortgage arranged to replace it once the hotel is operational.
What finance is best for a hotel refurbishment?
The best option depends on the scale. For cosmetic upgrades (new carpets, furniture, decorating) under £100,000, an unsecured business loan provides quick access to funds. For larger projects involving structural work, new bathrooms, or extensions, a secured loan or commercial mortgage extension offers longer repayment terms and lower rates. Some lenders offer phased drawdown facilities, releasing funds as each stage of the refurbishment is completed, which reduces interest costs.
How do seasonal fluctuations affect hotel loan applications?
Experienced hospitality lenders expect seasonal variation and will assess your performance across a full 12-month period. They look at your peak and off-peak occupancy rates, average daily rate (ADR), and how you manage costs during quieter months. Hotels that demonstrate proactive off-season strategies (events, corporate bookings, spa packages) are viewed more favourably. Some lenders offer seasonal repayment profiles with lower payments during quieter months.

Equipment finance for hotel & hospitality businesses

Buying a specific machine or vehicle is usually cheaper than a general business loan, because the asset itself is the security. These are the items hotel & hospitality businesses most often fund, with the price range we see quoted in the UK.

Equipment Typical price range Finance page
Coffee Machine £2k to £30k Coffee Machine finance
Bain Marie £600 to £5k Bain Marie finance
Banqueting Furniture £2k to £50k Banqueting Furniture finance
Bar Equipment £3k to £60k Bar Equipment finance
Bean To Cup Machine £2k to £12k Bean To Cup Machine finance
Beer Dispense System £800 to £12k Beer Dispense System finance
Blast Chiller £2k to £18k Blast Chiller finance
Buffet Counter £1k to £10k Buffet Counter finance
Catering Equipment £2k to £150k Catering Equipment finance
Cellar Cooling £1k to £6k Cellar Cooling finance
Charcoal Grill £2k to £20k Charcoal Grill finance
Coffee Cart £5k to £25k Coffee Cart finance

Browse all equipment finance pages

Understand the loan structures

The table above shows what a hotel & hospitality business borrows for. These pages explain how each kind of borrowing actually works, what it costs and who it suits.

Business loans for bad credit Government-backed business loans Merchant cash advance Revolving credit facilities Business loans with no personal guarantee Secured business loans Start up business loans Unsecured business loans

Related industry loans

Restaurant Pub & Bar Property Development Retail Gym & Fitness

Guides and resources

How to Get a Business Loan Business Loan Eligibility Secured vs Unsecured Best Business Loans UK iwoca Review Funding Circle Review

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