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Case Study

£25,000 to refurbish a B&B: Cutting the costs of hospitality

Worries about global warming, the uncertainty of overseas travel  - and costs - have meant that owners of UK holiday accommodation may be enjoying something of a boom.

Of course, today’s guests demand high standards. Refurbishment spending in all styles of hotel is up by more than 50% in the past few years. You don’t have to run a 5-star hotel to see the need for fresh, clean and well-equipped rooms, along with facilities such as WiFi and well-maintained grounds.

At Rangewell, we can help independent operators find the funding they need for their refurbishment plans - and we recently provided a solution for a unique B&B.

The Client's Challenge

Our client had bought a small pub which had become rather run down when the previous owner had let out the upper floors as bedsits. He saw that the location - close to the edge of the Lake District and in a picturesque village - offered plenty of opportunity for running a B&B.

The pub had operated as a hotel in the past, and he knew that there would be no problem getting the necessary planning permission to reinstate the business. The previous owners had not sought to get the proper arrangements for their change of use, which meant that the original planning approvals remained in place. 

“The chance to stay in a traditional inn close to some of the loveliest scenery in Britain was an obvious draw. I knew we could attract walkers and nature lovers touring the area - and I hoped we might bring in overseas visitors who liked the idea of staying at a historic British pub.”

The new owner launched a marketing campaign using the internet to bring in bookings, but he was aware that work would be needed first.

The pub itself needed a spruce-up and some new carpets and furniture. The rooms, however, needed complete refurbishment.

“Rooms need to provide quality and comfort. They can have older furniture as it can add to the ambience, but they must offer the highest standards of cleanliness and convenience - and be free from wear and tear.”

The rooms would need to be stripped out and redecorated to modern standards with ensuite bathrooms.

The owner worked out the costs involved and realised that he would need to spend around £25,000. But there were some problems. Although he had experience in the licensed trade, he was new to the hotel business - and he had some problems with his credit history. 

He wanted to find the most cost-effective way to provide the funding - but with his new owner status and a history of  problems with the previous borrowing, he found that it was impossible to arrange additional funding.

Are you a hotel or B&B owner looking for finance to refurbish? Find out more about Refurbishment Finance or apply today

Why does a bad credit history make new funding difficult?

Lenders look at credit records when they are considering a loan application, and a low credit score caused by a less than perfect credit history can spell problems.

Lenders will see any problems with a credit score - even from something as simple as a late or missed payment - as evidence that a borrower might present a risk.

Despite the fact that the client owned his pub and had a number of other business and property interests, lenders were not prepared to lend.

“I had a business that was ready to make real profits but, unless I could arrange the work on my letting rooms, there was little chance that I would get any positive reviews, if I could get any guests to come in the first place.” 

How Rangewell helped

Because of the adverse credit history, the cost of this rescue loan was high at 8% - but it did allow our client to do the work required to bring his premises up to the standard he wanted. 

The funding Rangewell arranged:

£25,000 over 5 years at 8%

Monthly £503.58

Total cost of loan £5,214.80

Our client was able to go ahead with his refurbishment plans, and is enjoying steadily growing bookings for his B&B business.

At Rangewell, we’re an Access to Finance specialist working with over 350 lenders to offer you an overview of more than 23,000 business finance products. That means, whatever your hotel funding need, from refurbishment to full hotel business finance, a call to us can save you money - and help you make the most of your business plans. 

Our service is:


Transparent and independent, treating all lenders equally, finding the best deals.


Every type of finance for every type of business from the entire market - over 300 lenders.


Specialist Finance Experts support you every step of the way.


We make no charge of any kind when we help you find the loan you need.