Hotel Business Loans & Finance in the UK

Quick summary

Hotel businesses use specialist finance to bridge seasonal cashflow, fund refurbishments, buy assets and invest in sustainability. Fast Business Loans does not lend — we match UK hotels with lenders and brokers who fit your needs. Submitting an enquiry is quick, free and no obligation; it won’t affect your credit score. Typical facilities start from around £10,000 and above.

Get Your Free Hotel Finance Match — Free Eligibility Check

Why UK hotels seek specialist finance in 2025/26

The hospitality sector faces variable occupancy, rising energy and staffing costs, and growing demand to invest in guest experience and sustainability. Many hotel owners need finance to:

• Fund refurbishments and rebrands
• Cover seasonal cashflow shortfalls
• Replace or upgrade kitchen and laundry equipment
• Install energy-saving systems and EV chargers
• Buy or refinance property

Whether you run a boutique town centre hotel or a coastal resort, the right funding mix can protect cashflow and support growth.

Typical hotel funding challenges & how finance helps

Cashflow volatility & seasonal gaps

Hotels often face income swings by season. Short-term working capital, invoice finance or overdrafts can smooth payroll, supplier payments and pre-season spend.

Capex & refurbishment pressures

Refurbishments preserve brand standards and drive rate uplift. Fit-out or refurbishment finance (phased drawdowns or bridging loans) helps avoid operational disruption.

Staffing & payroll peaks

Temporary recruitment and training costs can be large. Short-term loans provide breathing space until occupancy picks up.

Regulatory & sustainability upgrades

New energy rules and guest expectations mean investment in insulation, solar and EV infrastructure. Sustainable finance products and green loans may offer competitive terms.

Loan & finance options for hotels

Different facilities suit different needs. Below is a snapshot — terms depend on lender and the hotel’s profile.

Unsecured business loans

Good for smaller, urgent needs. Typical terms are shorter and rates can be higher. Many lenders will require trading history and healthy occupancy trends.

Secured lending & commercial mortgages

Used for purchases, large refurbs or long-term refinancing. Lenders will value the property and assess loan-to-value (LTV).

Asset & equipment finance

Structured to match the useful life of kitchen or laundry equipment. Often preserves working capital and can be tax-efficient.

For sector-specific funding (e.g., hospitality fit-outs or sustainability work) our network can connect you to brokers who specialise in hotel lending. Read more on hotels business loans.

Eligibility snapshot & what lenders assess

• Minimum facility — usually from around £10,000 upwards
• Trading history — typically 12–24 months helps
• Turnover and EBITDA
• Occupancy & ADR (average daily rate) trends
• Management accounts, P&L and cashflow forecasts
• Security available (property, assets) and director guarantees
• Refurbishment quotations and franchise agreements (if applicable)

Improving approval chances: keep up-to-date accounts, clear occupancy forecasts and quotes for works. Submitting a Fast Business Loans enquiry will not impact your credit score; lenders may run checks later if you apply.

How Fast Business Loans supports hotels

1. Complete our short enquiry (takes under 2 minutes).
2. We match you to hospitality-experienced lenders and brokers.
3. Receive rapid contact—often the same day—from shortlisted partners.
4. Compare offers, proceed with the one that suits you — or decline.

We do not lend or provide regulated advice. Our service is free to hotel businesses and designed to save time and increase your chances of a suitable match.

Start Your Hotel Finance Enquiry — Free Eligibility Check

Success snapshots (illustrative examples)

Case study 1 — Boutique hotel refurbishment (£500k)

Combination of unsecured term loan and asset finance for fixtures. Result: refurbishment completed in phases, minimal cashflow interruption; additional ADR achieved within 6 months.

Case study 2 — Coastal hotel seasonal bridge (£150k)

Short-term bridge loan to cover off-season payroll and supplier invoices. Result: finance repaid after strong summer trading; avoided late supplier fees and reputational issues.

Case study 3 — City aparthotel green upgrade (£300k)

Sustainability loan plus grants arranged for solar PV and heat pumps. Result: reduced utility spend and improved guest marketing proposition.

Individual results vary and all funding is subject to lender approval.

Comparing hotel finance providers

Traditional banks vs alternative lenders

Banks: lower rates, stricter covenants and slower decisions. Alternative lenders: faster, more flexible but often higher cost.

Brokered solutions vs direct approaches

Brokers can access multiple lenders and negotiate terms; direct applications may be faster if you have a strong banking relationship.

As an introducer, Fast Business Loans helps you reach multiple options quickly so you can compare real offers.

Responsible borrowing & risk considerations

• Understand total cost of borrowing: interest, fees and early repayment charges.
• Secured borrowing may put property at risk — consider carefully before securing debts against real estate.
• Assess affordability across low-occupancy scenarios.
• Seek independent professional advice from an accountant or solicitor where appropriate.

How to prepare for your hotel loan application

Have these documents ready to speed the process:

• Management accounts (12–24 months)
• Profit & loss and balance sheet
• Occupancy and ADR data, bookings pipeline
• Business plan or refurbishment brief
• Supplier/contractor quotes and licences
• Details of property security or assets

Ready to see which lenders fit your property mix? Get a Free Eligibility Check — it takes less than two minutes.

Frequently asked questions about hotel business loans

Do you work with start-up or newly acquired hotels?

Yes. We can match new or recently acquired hotels with lenders and brokers who consider start-up or turnaround situations, subject to viability and supporting projections.

What loan amounts do hotel lenders consider?

Most partners consider facilities from around £10,000 upwards. Some will lend into the millions for larger purchases or development projects.

How long does approval and funding take?

Times vary. Unsecured facilities can be agreed within days; secured or mortgage-style lending typically takes longer due to valuations and legal work.

Does an enquiry affect my credit score?

No. Your Fast Business Loans enquiry is a soft check and will not affect credit. Lenders may perform hard checks later if you proceed with an application.

Can franchise or branded hotels apply?

Yes. Franchise agreements and brand standards are common in hotel lending and can help demonstrate viability to lenders.

Are green or sustainability projects eligible?

Yes. Many lenders now offer sustainability loans or favourable terms for energy-saving measures — and grants can sometimes be combined.

Do you help with refinancing existing hotel mortgages?

Yes. We can introduce you to lenders and brokers who specialise in commercial mortgage refinancing and restructuring.

Next steps: secure the right finance for your hotel

If your hotel needs funding, the quickest way to explore options is to submit a short enquiry. We’ll match you with suitable lenders and brokers who understand hospitality.

Get Started — Free Eligibility Check

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Compliance & transparency

Fast Business Loans is an introducer, not a lender or financial adviser. Our service is free to business owners; we may receive commission from partners we introduce. Lending is subject to status and terms set by individual lenders. If you secure a loan and you do not keep up repayments, you may face enforcement action and possible loss of secured assets. Consider obtaining independent professional advice before committing to any finance agreement. Privacy and data handling follow our policy (see site footer).

Note: For further detail on specialised hospitality funding, see our industry pillar on hotels business loans.

1. What types of hotel finance are available in the UK? Hotels can access unsecured working capital, commercial mortgages, asset and equipment finance, refurbishment/fit-out loans, invoice or revenue-based funding, and sustainability/green loans.

2. How much can a hotel borrow? Facilities typically start from around £10,000 and can extend to several million pounds depending on security, turnover and the hotel’s viability.

3. How fast can hotel finance be approved and funded? Unsecured funding can be agreed within days, while secured or mortgage-style lending usually takes longer due to valuations and legal work.

4. Will submitting an enquiry affect my credit score? No—Fast Business Loans uses a soft eligibility check that won’t affect your score, with hard checks only if you proceed with a lender.

5. Is the enquiry an application or any obligation to proceed? It’s an enquiry only—free, no obligation, and used to match your hotel with suitable UK lenders and brokers.

6. Do you work with start-up or newly acquired hotels? Yes—start-up and turnaround hotels can be matched with lenders who consider early-stage cases subject to viability and projections.

7. What are the key eligibility criteria and documents needed? Lenders look at trading history (12–24 months helps), occupancy/ADR trends, turnover and EBITDA, available security, plus management accounts, P&L, cashflow forecasts and quotes for works.

8. Do I need property security, or are unsecured options available? Both exist—unsecured loans suit smaller, faster needs, while secured loans or commercial mortgages can offer larger amounts and lower rates against property or assets.

9. Can I finance refurbishments, equipment or sustainability upgrades? Yes—refurbishment, asset and sustainability loans can fund room upgrades, kitchens, laundry, solar, heat pumps and EV chargers, sometimes alongside grants.

10. Can you help refinance an existing hotel mortgage or restructure debt? Yes—Fast Business Loans can introduce you to lenders and brokers who specialise in commercial mortgage refinancing and restructuring for hotels.