Hotel Finance

Invest in your business and end cash flow worries with specialist hotel finance. Learn more about business loans for hotels from Rangewell and start your application today.

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Funding options



  • Payments geared to your turnover
  • Adverse Credit – no problem
  • No Income Proof Required
  • Repayment and interest-only available

Finance For Property

  • Terms up to 20 years
  • £50,000 – No Maximum
  • Rates from 2% over base rate
  • Up to 80% Loan to Value available


  • Answers for all types of challenges
  • Solutions tailored to your needs
  • Arrangements tailored to your circumstances
  • Assets, cashflow, growth capital

Talk to Rangewell - the hotel finance experts

Running a hotel business can be very rewarding but the right funding will be vital for your success. At Rangewell, we know every lender in the market and can help you find the funding you need.

At Rangewell we recognise your professional status, and we work harder to find you better solutions - which can include 100% finance for many of your needs.

Call us020 4525 5312
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Hotel Finance

Let our commercial hotel finance experts support your cashflow

If you're one of the many hotel owners looking to grow their business in the hospitality industry, get in touch with Rangewell today!

Table of Contents

There are many reasons why you may be considering hotel finance. From building a new hotel to developing an existing property, negating cash flow problems at your hotel or consolidating existing debt, the Rangewell team can help.

 The hotel sector is still very much recovering from the impact of the coronavirus pandemic. So, while many hotels have been fully operational for quite some time, the long-term effects of lockdowns and reduced travel will still be felt by hoteliers for a long time to come.

So, whether you require hotel development finance, short term bridging loans or another kind of specialist finance, get in touch with Rangewell today.

How hotel finance can help

At Rangewell, we know the challenges of setting up, buying or growing a hotel – and the ways to provide solutions for them.

There is a range of funding options to help a hotel operator, including:

  • Setting up a hotel
  • Buying a hotel
  • Funding a hotel franchise
  • Refurbishing and maintenance
  • Funding for assets
  • Working Capital Finance
  • Merchant Credit Advance
  • Tax Loans
  • Dealing with problems

If you're a hotel manager looking to grow in the hotel industry, get in touch with Rangewell for advice on real estate financing. 

Hotel development finance

If you are planning to build a new hotel from the ground up, redevelop an existing property or even improve the facilities of an operating hotel, then you will need the financial backing to turn your plans into a reality. This is where hotel development finance comes in. 

Redeveloping a hotel can be a costly and time-consuming process, so it's vital to have a finance broker by your side who knows the industry and can help find the right finance solution to meet your needs. This may be anything from short term bridging loans through to refinancing existing debt into easier monthly payments... whatever your hotel development finance needs, Rangewell can help.

Hotel development finance to suit your needs

Get in touch with Rangewell to start your application today

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Building a new hotel

When it comes to building a new hotel, you will likely either start from a plot of land or an existing building with the means of converting it into a new establishment. Depending on whether you own or lease the land, there will be different types of hotel development finance available to you. 

The high cost of buying or leasing land or a property in the ideal location can be the biggest barriers for hotel owners looking to launch a hotel business. 

Once you have bought your premises you may be faced with costs for refurbishing and converting it to the necessary specifications. Unless it has already served as a hotel, you may need to build ensuite facilities as well as to equip and decorate rooms. You may also need to think about new heating and hot water systems.

You may also need to make costly changes to meet fire regulations, with escape routes and possibly external fire escapes. Unless yours is a very small operation, you will also need to install a commercial kitchen.

Publicity will be another expense. You might also need to budget for things like property maintenance and prepare for additional costs and ongoing expenses until your business becomes profitable.

How finance you qualify for will depend on your location and the size of your hotel, but even if you already own a property, you probably don't have enough cash stashed away to take care of the additional costs involved before you can open as a hotel.

To find out more about hotel management agreements, speak to Rangewell today. 

Buying an existing hotel

Buying an existing hotel may involve a large upfront cost, but it means reduced business risks. Raising the necessary finance may actually be easier than staring up.

This is because you have a business that is already operational, and with a trading history that lenders will be able to see and use for the basis of their decision making – it's almost always easier for them to approve a lending for an existing business rather than a start-up.

You also have another advantage, in that you will be buying a business which should be generating predictable profits from day one.

The purchase price will reflect the kind of occupancy rates, turnover and profits the hotel is currently generating. It should also take into account the size and condition of the premises and the potential for growth.

The necessary cash to buy an established hotel business will probably run into hundreds of thousands of pounds. However, because an existing business provides a relatively low risk, it may be possible to provide the necessary funds with a secured loan or commercial mortgage, which will spread repayments over a longer period. 

You may need to provide a large deposit to arrange a Secured Loan. Lenders may stipulate that you contribute as much as 40% of the finance required but many will be happy to accept other business assets or your home as security instead.

Writing a suitable business plan, which outlines the current state of the business and your plans to grow it, is vital. This should involve a detailed analysis of the existing business and be supported by accounts and projections of future earnings.

For advice on a hotel purchase, speak to Rangewell today!

Find the right finance for your hotel business

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Funding a hotel franchise

Many of the world's best-known hotel chains operate on a franchise model. By joining a suitable chain, you might take advantage of an established brand backed by powerful, full-service support, an established online reservation and booking system that can bring guests from across the world to your hotel, and the power of bulk buying to reduce your supply costs.

A hotel franchise would require additional investment, but the potential rewards are extremely attractive. It could enhance your earning potential by offering the prospect of predictable returns from a proven business model.

You will usually need to have secured suitable premises before you can look at a franchise arrangement, but whatever the focus of your hotel, and wherever your location is, the chances are that a suitable franchisor will exist who can work with you to help you make the most of your market.

You may have to pay an upfront fee to the franchisor who owns the brand. You will need to follow this with additional investment in refurbishment, equipment and more to meet their brand standards. Quality counts – from the moment guests enter your reception the franchise agreement will specify the type of experience they should have.

To find out more about buying major hotel brands, speak to Rangewell today.

Refurbishing and maintenance

Hotel premises are required to provide services for guests 24/7. It means that all areas will require constant upkeep and maintenance, and regular refurbishment. It may be necessary to call in specialist contractors who can provide all work to very high standards in the shortest possible time.

Emergencies, such as problems in the kitchen, will require a rapid call out to avoid the potential of lost revenue. All this work may require funding at short notice.

You can apply for funds at any time - but it can reduce costs if you arrange a lending facility before you need it. You can call on it as you wish.

You might also want to arrange the necessary funding before you finalise a purchase, as part of your business plans.

To find out more about hotel refurbishment finance for a construction project or renovation project, our professional team have an in-depth knowledge of the market. We can discuss key issues and provide you with everything you need to know about hotel finance.  

We can work with you to help you find the finance you need to answer your hotel operating finance needs.

Types of hotel finance

There are a number of different types of finance available to hotel owners and developers. From supporting the acquisition of land and/or property to invest in redevelopment or even supporting with cash flow, a strong finance stack is key to running a successful hotel. 

To determine which type of finance is right for your circumstances, we recommend getting in touch with Rangewell for tailored financial advice. 

Bridging finance

Hotel bridging finance covers a wide variety of loans, always typically short term and used to 'bridge a gap' in financing. For example, if you need quick funds to support a property acquisition before the mortgage is released. 

Asset finance 

If you are specifically looking for finance to fund the purchase of equipment then asset finance might be a good option. Hotels require a lot of equipment, such as computers, telephones, kitchen equipment and more, so asset finance is quite common for new and redeveloping hotels.

Refinance and debt consolidation

For hotels still recovering from the COVID-19 pandemic or experiencing bad credit, it might be a good time to revisit your existing finance stack and consider refinancing your hotel to consolidate debt. Many businesses took out short-term loans to support cash flow during the lockdown, and these loans may no longer be the best terms for your hotel. 

Merchant cash advance

A great way for businesses to secure funding with the pressure to repay in large amounts, merchant cash advance is a system whereby your finance is repaid when customers pay using their credit or debit cards. A small percentage of each transaction goes to the lender. Making this a great way of boosting cash flow in line with your takings.

Secured and unsecured loans

If you require a large sum of money, a secured loan is often your best choice as it is tied to the value of your assets (usually property), giving the lender the security they need. However, unsecured loans may also be an option, especially if you don't own any significant asset.

Both options depend heavily on your circumstances, including how you intend to spend the money and how long you need it for. So, it's best to speak to the experts at Rangewell to find out what could work for you.

Tax loans

Tax is an issue for every business. A large quarterly VAT or annual tax demand can cause problems with your cash flow, particularly if it falls at the same time as other costs.

Funding is available to let you spread the cost of your tax demands into affordable monthly payments in line with your cash flow. This will help ensure that your business avoids cash flow problems, and can free up cash for use elsewhere.

Working capital finance

Working capital finance is designed to boost the capital available to your hotel business when it is not generating sufficient revenue itself. It's often used to provide cash to pay staff and suppliers while business is slow during the early days, or during slow seasons when your cash flow is already stretched. It is usually designed to be repaid in the short- to medium-term, once your hotel is established and running.

Revolving credit

Revolving credit facilities provide you with a line of credit and an agreed limit that you can call on as and when you need it. You only pay for the money you take out, so it can be a cost-effective way to raise funds if you need them in an emergency, or for the short term.

Jigsaw funding

You may have seen the term 'jigsaw funding' to refer to any combination of several types of finance. As the name suggests, this is a bespoke package that fits together - so working with a broker like Rangewell is vital to ensure you have the right combination of funding for success.

These are just some of the common types of hotel finance. To discover whether any or a combination of these is right for you, or whether another option is preferable, speak to Rangewell's team of experts today.

Hotel finance from Rangewell

Working in the hotel sector means that there are many lenders who will be happy to lend to you. But not all lenders will offer the best products or most competitive terms. 

With access to the whole of market, including a number of specialist hotel finance lenders, we can help you to secure the most competitive rates for businesses in the sector for all types of finance, including Professional Loans, Unsecured and Secured Loans. plus, as well as the conventional loan products, we can also help you find Alternative Funding, using new loan providers and innovative funding solutions.

Whether you have a straightforward finance need for your hotel or require a more complex ‘Jigsaw' Funding plan made up of a combination of products, we can work with you to find the answers that are right for you and your plans for the future, call us now to get our experts working for you.

To find out more about hotel construction loans, speak to Rangewell today.


  • Find the most competitive loan to help an experienced hotel manager buy his own hotel

  • Help an established hotel completely refurbish their 42 room premises

  • Help a national hotel chain equip provide wi-fi in every room as a billable extra service

  • Find the most competitive finance to allow the owners of a historic country house convert and equip their premises as a resort hotel

  • Help arrange ‘Jigsaw’ Funding to allow an experienced hotel operator manager to buy an established business

Last update: 29 September 2022

Need finance in a hurry?

Contact our team today to find out your options

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Frequently asked questions

Have a question?

How do I get financing for a hotel?

Hotel mortgages will be assessed on a case by case basis, but typically the following factors will determine how favourable a lender will view a commercial hotel lending application.

Industry experience 

A lender will want to know how much experience you have, specifically working in the hotel environment; the more experience you have, the more favourable your application will be. 

If you plan to leave your hotel's day-to-day management to someone else, your lender will scrutinise your hiring strategy and may adjust your loan to value amount accordingly. 

The lender will also want to see that all the appropriate food hygiene and licenses are in place and up to date. 

Occupancy rates

The business's profitability will rely on the occupancy rate if the revenues per available room (RevPAR) and average daily rates (ADR) are positive for lenders.

Trading accounts

Most lenders are likely to want to see at least two years of trading history. 

Business and marketing plans 

Most businesses won't survive in an online world without a solid marketing strategy. 


Location can plan a massive part in the success of a business. If your hotel is close to transport hubs, office buildings, and entertainment centres) then this could plan a significant factor in its profitability. 

Out of all of the things above, the experience could play the biggest party. The more knowledge you have in the hospitality field, the more you'll show you can influence profitability.

How much deposit do I need to buy a hotel?

For commercial hotel finance, most lenders will require a deposit of around 40%; some may require 30, very few will require 25%. But, again, they'll look a the strength of your business trading accounts, future profit, and the borrower's credit history to decide on the deposit amount.

What are the types of financing?

There are different types of finding available. Get in touch with Rangewell to find out more. 

Tax loans: Funding is available to let you spread the cost of your tax demands into affordable monthly payments in line with your cash flow.

Operating finance: Working Capital Finance is designed to boost the capital available to your hotel business when it is not generating sufficient revenue itself. It's often used to provide cash to pay staff and suppliers while business is slow during the early days or during slow seasons when your cash flow is already stretched.

Revolving Credit Facilities provide you with a line of credit and an agreed limit that you can call on as and when you need it. You only pay for the money you take out, so it can be a cost-effective way to raise funds if you need them in an emergency, or for the short term. 

Merchant Cash Advances may be ideal if you take payments through a card terminal or PDQ machine. 

To find out more about your hotel financing options, speak to Rangewell today.

How can I get a hotel with no money?

Secured Bank Loans 

Traditional bank loans may be able to offer practice loans to businesses that can meet their strict criteria. However, it can be challenging to qualify for hotel funding, especially in the first stages. Getting a lower interest rate and a higher amount may prove challenging. Still, for the entrepreneur starting out, it may be impossible to get a high credit score, which is essential for security against the loan. 


By advertising your desire to start up a hotel on crowdfunding websites, you'll stand chances of having to wait months for the funds to be gathered. In some instances, the project won't be funded at all. 

Private Investors

Seeking out a private investor is an excellent way to get hotel funding. While you can often get the funds you need quickly, investors will often want to have a say in the business, and this may not be ideal.

Business credit cards and overdrafts

If you're struggling to get a bank loan, then you might be able to access a business credit card or an overdraft facility. Most credit cards will have a limit on how much can be withdrawn, and often credit cards and overdraft facilities have limitations and high-interest rates.  

Business loans for medical facilities

At Rangewell, we can offer you brokered business loans for your hotel. In addition, we offer unsecured loans, so you won't be required to secure the funding your receive against any collateral. Opting for an unsecured business loan may suit smaller businesses just starting and can support you with the extra support and flexibility when you need it the most. It will help with expansion costs or simply aid you in the maintenance and upkeep of your business. 

Can I get a mortgage on a hotel?

It will be an excellent idea to speak to a specialist commercial mortgage broker who can look at the whole situation and provide solid advice for getting a commercial mortgage for a hotel.

Speak to Rangwell to learn about your hotel loan options. 

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