We make finance happen
Whether you are buying an existing freehold hotel, or investing in a long-term leasehold hotel, we can raise the debt finance for you. Our lender panel are interested in both branded and unbranded assets. At different stages of the economic cycle, banks have an appetite for a range of assets including central London and regional or coastal locations and HotelFinance prides itself on its close relationships with panel members, regularly checking in on their latest rates and products.
This is a very specialist area, requiring careful consideration of the project and matching to the most appropriate lender. There are a limited number of lenders actively seeking to provide development finance. Often, there will be complex negotiations between the lender, investors, developers, and other forms of debt provider. HotelFinance have significant experience of the hotel development process and Sarah Green’s previous role in the development team of a major brand, means we can bring significant added value to such processes. Our lender panel can provide development finance, bridge to Practical Completion and offer long term finance thereafter.
Post Covid, there is likely to be a significant number of hotel owners looking to refinance their existing debt to raise additional funds to invest in their product, rebrand or reposition, and to take account of the changing circumstances in the sector.
We are finding it very common in the present environment for our financially healthy clients to acquire hotels in order reposition or rebrand following additional investment. In such circumstances we often secure finance from our panel of bridging loan providers for short term finance pending a longer-term refinance with different lenders once the project has completed.
We have experience of working with mezzanine providers to fill the gap between senior debt and equity. We are seeing this more regularly post Covid as the impact of lockdown has often caused the erosion of equity in some hotels.