Hotel mortgages

Hotel finance is available for boutique hotels, bed & breakfasts, guest houses, and larger hotel chains. The specific criteria and terms vary depending on the hotel type, size, and operational requirements.

Hotel mortgages typically require deposits of 35-40% of the property value, though this can vary based on your experience, the property type, and the lender's criteria. Higher deposits may be required for new operators.

Most lenders prefer borrowers with previous hotel operational experience, though some may consider applications from those with relevant hospitality backgrounds and strong management teams.

Yes, hotel mortgage rates are typically 2-3% higher than standard rates due to the increased risk and operational complexity. Rates may vary based on your experience and the property's performance record.

Hotels must comply with hospitality regulations, including health and safety requirements, food safety standards, and licensing requirements. Lenders will assess your ability to meet these requirements.

Yes, though new build hotels may require higher deposits and more detailed planning. You'll need to demonstrate that the property meets all regulatory requirements and has appropriate facilities for hotel operations.

Lenders expect some variation in occupancy and typically require you to demonstrate sufficient reserves to cover mortgage payments during low occupancy periods. Some lenders may require 6 months' payments in reserve.

Some lenders will consider mixed-use properties with hotel elements, though the criteria may be more complex. You'll need to demonstrate that the hotel portion meets all requirements and generates sufficient income.

Hotels require specialist insurance including buildings, contents, public liability, and business interruption insurance. The lender will specify the required insurance levels and may need to be named as a beneficiary.

Lenders typically assess income based on occupancy rates, room rates, and operational costs. They'll want to see evidence of stable occupancy and realistic revenue projections based on local market conditions.