Hotels business loans — finance for expansion, acquisition & buying a second site

Short answer: Yes — we support hotel expansions and acquisitions, including purchasing a second site. UK Business Loans doesn’t lend directly; we introduce hoteliers to specialist lenders and brokers who provide acquisition mortgages, development finance, bridging loans, asset finance and working capital. Complete a short enquiry for a free eligibility check and fast quotes so lenders or brokers who understand hospitality can contact you. Get Quote Now

At a glance — yes, we support hotel expansions & buying a second site

We help hotel owners and operators find suitable finance for:

• Expansions and refurbishments (room upgrades, new wings, spa, F&B fit-outs)
• Purchasing an additional hotel or second site (group roll-outs and acquisitions)
• Short-term bridging to secure purchases or complete chains of deals
• Refinance and restructure across multiple properties
• Asset and equipment finance for FF&E, kitchens, laundry and vehicles

We organise loans from £10,000 upwards. The enquiry is a free eligibility check — not an application — and will not perform a hard credit search. Free Eligibility Check

What lenders will consider when funding hotel expansions or acquisitions

Lenders and specialist brokers assess hotel projects on a mix of property, trading and management factors:

• Security & asset type: freehold or long leasehold commercial property is preferred; some products accept business asset-backed security.
• Trading performance: turnover, occupancy, ADR (average daily rate) and RevPAR trends — historic seasonality is assessed.
• Valuation & condition: surveyors check value, required remedial works, EPC and any unusual title or lease terms.
• Experience: operator track record and management capability to run multiple sites — lenders prefer experienced hotel teams for multi-site acquisitions.
• Location & demand: local demand drivers (tourism, corporate—conference/leisure mix) and planning permissions for expansions.
• Financial strength: management accounts, cashflow sensitivity, debt service cover and any existing group covenant across sites.

What this means for you: presenting clear management accounts, up-to-date valuations and a robust business plan improves your chances and the terms offered.

Types of finance commonly used by hotels (and when they’re used)

Common products and typical uses:

• Commercial mortgage: medium/long-term finance to buy a hotel or refinance an acquisition.
• Development / construction loans: staged funding to extend, add rooms or build out facilities — usually interest-only during construction.
• Bridging loans: fast short-term funding to secure an auction purchase or exchange while you arrange longer-term finance.
• Refinance & term debt: replace expensive short-term debt with longer-term mortgages to improve cashflow.
• Asset / equipment finance: fund FF&E, kitchens, boilers and beds over fixed terms to preserve working capital.
• Working capital & seasonal facilities: overdrafts, merchant cash advances or invoice finance for seasonality or growth.

Need a tailored recommendation? Get Started — Free Eligibility Check

Typical eligibility, required documents and lender expectations

Below is a practical checklist most lenders will request. Requirements vary by product and lender.

• Company registration details, names of directors/owners and ID checks
• Management accounts (latest year) and historic trading figures showing occupancy and ADR
• Business plan for expansion or acquisition showing forecasts and sensitivities
• Property information — title deeds, lease documents, EPC, planning / building regs
• Valuation or survey report (some lenders commission their own survey after offer)
• Bank statements (3–6 months), VAT returns where applicable and tax filings
• CVs and operating experience for key managers (especially for multi-site operators)
• Credit history — past defaults or CCJs will be considered and may limit options but specialist lenders exist

Tip: gather these documents early to speed approvals — brokers we introduce can help pack a stronger submission.

How UK Business Loans matches hotels with lenders and brokers

Our process is designed to be fast and simple:

1. Short enquiry (under 2 minutes): you tell us loan amount, purpose (expansion/acquisition), business name and contact details.
2. Sector match: our platform and experienced team match your request to lenders and brokers who specialise in hospitality finance.
3. Rapid contact: matched partners typically call or email with an eligibility view, indicative rates and required next steps — often within hours.
4. Compare & progress: review offers, instruct the broker/lender you prefer and follow their application process (surveys, legal, final offer).

Important: submitting an enquiry is not an application and does not commit you to proceed; it will not perform a hard credit check. We only share your details with selected lenders/brokers who may be able to help. Free Eligibility Check

For further sector reading, see our dedicated hotels industry page on hotels business loans.

Costs, timescales & common terms to expect

Indicative ranges (these vary by lender, security and credit profile):

• Loan sizes: typically from £10,000 to several million (for multi-site acquisitions, £250k+ is common).
• Rates: depend on product — bridging rates are higher (often variable), mortgages and development loans vary by term and security.
• Fees: arrangement fees (1–3% typical), valuation, legal costs, surveying and broker fees where applicable.
• Timescales: bridging: days–2 weeks; commercial mortgage: 4–12 weeks; development loans: depends on milestone draws and approval stages.

All figures are indicative. Your matched lenders will give exact terms following their eligibility checks and valuations.

Risks, due diligence & compliance considerations

Key risks and practical safeguards:

• Plan for cost overruns on build/refurbishment projects — include contingency in budgets.
• Independent valuation and legal due diligence on title, planning constraints and licences (e.g. alcohol, food hygiene) are essential.
• Understand tax implications and VAT rules for works or acquisitions — consult your accountant.
• Ensure realistic occupancy/revenue projections and stress-test your forecasts for low-season scenarios.
• Ask about personal guarantees, group covenants and cross-security across sites before committing.

We do not provide regulated advice — we introduce you to lenders and brokers; you should obtain specialist legal and tax advice where needed.

Real examples — quick case studies

Case study A — Expansion & refurbishment

A 35-room coastal hotel wanted a £350,000 development loan to convert unused loft space into five additional rooms and refresh the restaurant. Matched to a lender offering staged development finance, the client drew funds against agreed milestones, completed works in 12 weeks and saw occupancy increase by 15% in the following season. Outcome: uplift in ADR and a positive return within 18 months.

Case study B — Acquisition of a second site

An experienced operator identified a second town-centre hotel at auction but needed funds to exchange. We matched them to a specialist bridging lender who provided £500,000 bridging to secure the purchase. The operator then refinanced to a traditional commercial mortgage at a lower rate. Outcome: acquisition completed within 10 days and refinanced after 9 months.

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Frequently asked questions

Ready to explore finance for your hotel expansion or second site?

If you’re planning an extension, refurbishment or buying an additional hotel, start with a quick, no-obligation enquiry. Tell us the loan amount and purpose and we’ll match you to lenders and brokers with hospitality experience. Complete the short form — it takes under two minutes and will not make a hard credit search: Get Started — Free Eligibility Check

Important: UK Business Loans is an introducer. We do not lend or provide regulated financial advice. Submitting an enquiry allows us to share your details with selected lenders and brokers who may contact you with quotes. The enquiry is not an application and does not commit you to accept any offer.

1. Can UK Business Loans help me get finance to buy a second hotel? — Yes, we introduce hoteliers to specialist lenders and brokers who arrange acquisition mortgages, bridging and refinance solutions for second-site purchases.
2. What types of finance are available for hotel expansion and refurbishment projects? — Common options include commercial mortgages, development/construction loans, bridging loans, asset/equipment finance and working capital facilities.
3. How much can I borrow for a hotel acquisition or development? — We arrange finance from around £10,000 up to multi‑million pound facilities, with many acquisition deals starting at £250k+.
4. Will submitting an enquiry through UK Business Loans affect my credit score? — No — the short enquiry is a free eligibility check only and does not trigger a hard credit search.
5. How quickly will I receive indicative quotes for hotels business loans? — Matched lenders or brokers typically provide an initial eligibility view within hours, while full loan offers take longer pending surveys and legal checks.
6. What documents do lenders usually ask for when assessing hotel loan applications? — Lenders commonly request company details, management accounts, bank statements, business plan/forecasts, property title/lease docs, EPC and valuation or survey reports.
7. Can I get bridging finance to secure a hotel at auction or to exchange contracts quickly? — Yes — specialist bridging lenders we introduce can provide short‑term funding to secure purchases while you arrange longer‑term finance.
8. Do lenders prefer freehold hotels or will they accept leasehold properties and business asset security? — Many lenders favour freehold or long leasehold commercial property, though some products accept leasehold or business asset‑backed security depending on risk.
9. What do lenders look at when deciding whether to fund a hotel expansion or acquisition? — They assess property valuation and condition, trading performance (occupancy, ADR, RevPAR), management experience, location demand and overall financial strength/cashflow.
10. Will I be required to provide personal guarantees or cross‑security for multi‑site hotel finance? — Often yes — lenders commonly ask about personal guarantees, group covenants and cross‑security across sites, so discuss these terms early with your broker.