Hotel — pricing factors (UK)
What lenders weigh when pricing hotel cases — not live quotes. Use our calculators and speak to an FCA-authorised broker for firm-specific numbers.
Mortgage118 does not publish indicative rate bands. Lender pricing changes daily and depends on your profile.
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What lenders look at
These factors shape whether a hotel case is accepted and how it is priced. They are not a quote.
- Hotel operational experience
- Strong financial position and track record
- Professional team and management structure
- Adequate working capital and reserves
- Understanding of hospitality industry
- Suitable property for hotel use
For indicative numbers, use our mortgage calculators and compare brokers who specialise in hotel.
What moves your rate up or down
These are the strongest factors lenders weigh when setting pricing.
- Specialist lenders with hospitality expertise
- Operational income assessment
- Flexible lending criteria for hotel properties
- Professional support for hospitality businesses
- Access to prime hotel locations
Fee breakdown
Common charges to plan for alongside the headline rate.
Arrangement Fee
Commercial facility fee
1% - 2%
of loan amount
Valuation Fee
Commercial property valuation
£1,500 - £5,000
specialist surveyor
Legal Fees
Commercial conveyancing
£2,000 - £5,000
plus due diligence
Broker Fee
Commercial arrangement
0.5% - 1.5%
on completion
Rate FAQs
Quick answers to common pricing questions.
What experience do I need to operate a hotel?+
Most lenders prefer borrowers with previous hotel operational experience, though some may consider applications from those with relevant hospitality backgrounds and strong management teams.
Are hotel mortgage rates higher than standard rates?+
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.
Can I get hotel finance for a new build property?+
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.
What happens if occupancy rates fall?+
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.
Can I get hotel finance for a mixed-use property?+
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.
How is hotel income assessed for mortgage applications?+
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.