Hotel and Guest House Mortgages

At Sterling we Broker Commercial Mortgages for all types of Freehold or Long Leasehold Hotel and Guest House establishments including newly built premises and recently refurbished buildings.  These are for premises for owner occupation.
If you are looking for a Mortgage for investment purpose, please see Property Investment Loans.

Our Commercial Property Mortgage Consultants all have backgrounds in the banking sector and can offer advice to Clients in respect of structuring a Commercial Mortgage deal to meet their needs.

Acceptable security

Almost all Hotel premises are acceptable, if it is Freehold or Long Leasehold.  This includes: -

  • Hotels
  • Guest Houses
  • Bed and Breakfast Accommodation

Hotel and Guest House Commercial Mortgage Application

We have access to a wide range of commercial mortgage lenders offering innovative and competitive products.  That enables us to match the client’s requirements to the most appropriate lender. Some also offer Mortgages to Clients with impaired credit

The financial information that we will need to support a mortgage application is as follows:

  • Last 3 years Audited Accounts
  • Latest Management Figures
  • Profit & Loss Forecast for next 12 months
  • Last 6 months business bank statements
  • Brief CV/profiles of partners/directors
  • Asset/liability statements of applicants

Broker Fees

All cases are supported by professionally prepared credit applications, thereby significantly enhancing the chances of our clients securing the optimum financial package. Unlike some of our competitors, we do not believe in up front charges. Our fees are only payable when our client has received a formal offer of finance.     
Please call and speak to one of our Property Funding Consultants on 0844 4144372 to discuss your proposition or complete our Enquiry Form

Case Study 1 - Hotel Refinance & Refurbishment - £750,000

Area - Commercial Hotel in busy coastal town, Kent:
Our client wanted to convert some of the Hotel's outbuildings into Conference Rooms and finish off a general refurbishment programme. The existing bank loan facility had only 8 years to run.

Hotel Commercial Mortgage Solution:

  • Mortgage of £750,000
  • Repayment term of 20 years
  • Repayments on the new mortgage were actually less than the existing facility, due to 'stretching' the repayment term.
  • At bank base rate plus margin 1.5%

Case Study 2 - Hotel and Restaurant - £250,000

Area - Hotel & Restaurant in a busy Market Town, North Wales
The client was seeking funds to extend the Restaurant where demand was very strong. Existing bankers were not being overly helpful; there had been a recent change in Manager and the new incumbent seemed cautious.

Hotel and Restaurant Commercial Mortgage Solution:

  • £250,000 to repay existing borrowings and cover the extension costs.
  • A 15-year repayment facility was agreed at bank base rate plus margin 2%.

Case Study 3 - Hotel and Holiday Lets - £1,000,000

Area - Purchase Cumbiran Country House Hotel plus a number of bungalows in the grounds.
The existing site was not being utilised to its full potential. Our client's plans included provision of conference facilities, wedding venue as well as more actively marketing the site as a holiday location.

Hotel Commercial Mortgage Solution:

  • A 15 year repayment facility was agreed at bank base plus margin 2%.

All cases are supported by professionally prepared credit applications, thereby significantly enhancing the chances of our clients securing the optimum financial package. Unlike some of our competitors, we do not believe in up front charges. Our fees are only payable when our client has received a formal offer of finance.