Hotels & Aparthotel Business Loans — Funding for Serviced Accommodation

Aparthotel and serviced accommodation operators can access a wide range of business finance in the UK. Whether you need working capital, refurbishment or conversion funding, bridging to secure a purchase, or asset finance for furnishings, UK Business Loans connects operators to lenders and brokers who understand hospitality cashflows. Complete a short enquiry for a Free Eligibility Check and tailored quotes: Get Quote Now — Free Eligibility Check.

Note: UK Business Loans is an introducer — we do not lend money or give regulated financial advice. We match your business to lenders and brokers who can provide quotes and solutions. Typical facilities start from £10,000 and go upwards.

---

Table of contents

• Quick answer / TL;DR
• Why aparthotels & serviced accommodation have particular financing needs
• Types of finance available
• Lender appetite & what underwriters look for
• Common challenges — and practical solutions
• Real-life examples
• How UK Business Loans helps — our process
• What you’ll need to apply (checklist)
• Typical costs & terms (compliant guidance)
• FAQs
• Next steps & final call to action

---

Quick answer — can aparthotel & serviced accommodation operators get funding?

Yes. Aparthotel and serviced accommodation operators can obtain finance via mainstream banks, specialist hospitality lenders and brokers, bridging lenders, asset finance firms and alternative capital providers. Funding is available for property purchase or refinance, conversions and refurbishment, seasonal working capital, furniture and equipment, and short-term bridging.

Because trading models and risk factors differ from standard SMEs, lenders assess occupancy, average daily rate (ADR), forward bookings and how income is generated (OTAs, corporate accounts, direct bookings). UK Business Loans helps match you to the lenders or brokers most likely to consider your circumstance. Get Quote Now — Free Eligibility Check.

---

Why serviced accommodation & aparthotels have particular financing needs

Serviced accommodation and aparthotels combine hospitality trading with property and asset management. That creates a few lender-specific concerns:

• Seasonality and occupancy volatility — lenders want to see year-round cashflow management or clear seasonality plans.
• Revenue mix — rates, length-of-stay, and corporate vs leisure bookings affect predictability.
• Asset intensity — furnishings, laundry, IT systems and FF&E are material costs and can be financed independently.
• Planning, licences and short‑let rules — unresolved regulatory risk reduces lender appetite.
• Channel fees — OTAs and commission structures affect net revenue, so lenders typically review net ADR and RevPAR metrics.

Here’s why that matters: lenders use trading data (occupancy, RevPAR, ADR), management accounts and forward bookings to stress-test your forecasts. Showing consistent performance or proven management experience materially improves your chances.

---

Types of finance available to aparthotel / serviced accommodation operators

There’s a wide menu of options depending on the purpose, security available and trading history. Below are the most common facilities and when they make sense.

Business loans (secured & unsecured)

Use: working capital, seasonal cashflow, marketing or smaller refurbishments. Typical sizes: from around £10,000 up to several hundred thousand. Security: unsecured for smaller amounts, or secured via property or personal guarantees for larger facilities. Lenders want management accounts and bank statements.

Commercial mortgages / property finance

Use: buy-to-let or commercial purchase and refinance. Lenders assess the property’s use (hotel / serviced accommodation vs residential) and require deposits, valuation and evidence that the business model can service the mortgage. Specialist commercial mortgage lenders may accept aparthotel models if forecasts are realistic.

Development & refurbishment loans

Use: conversion to aparthotel or major refit. Structure: staged drawdowns, interest rolled into facility during works, and exit to longer-term mortgage once trading stabilises. Lenders will review contractor quotes, project plan and post-refurb revenue forecasts.

Bridging finance

Use: short-term purchase or urgent funding to complete works before refinancing. Bridging is quick but more expensive — suitable for time-critical deals. Make sure you have a clear exit plan to long-term finance.

Asset & equipment finance

Use: furniture, beds, laundry, commercial kitchens, IT and POS systems. Options include hire purchase, leasing or asset refinance. These facilities preserve cash and often require the asset as security.

Invoice finance & merchant cash advance

Use: operators with corporate invoicing or predictable card sales. Invoice discounting, factoring or merchant advances release cash tied up in receivables or future card takings for faster liquidity.

Specialist hospitality funds and private lenders

Use: where mainstream lenders are cautious. Specialist funds assess RevPAR and occupancy rather than conventional SME metrics and can be more flexible — though rates and fees vary.

Unsure which is best? Provide the purpose, amount and security available and we’ll match you with providers who commonly support that solution. Get Quote Now — Free Eligibility Check.

---

Lender appetite — what underwriters typically look for

Underwriters focus on quantifiable revenue and risk factors. Typical items they assess:

• Trading history — management accounts (preferably 12–24 months) and VAT returns.
• Occupancy & ADR metrics — historical occupancy rates, ADR and RevPAR trends.
• Forward bookings — evidence of future revenue reduces perceived risk.
• Business structure & governance — company accounts, directors’ experience and CVs for new conversions.
• Property status — ownership vs leasehold, lease terms and restrictive covenants.
• Planning / licensing — confirmation of planning permission for short lets or commercial use.
• Security & guarantees — property, business assets or personal guarantees where required.

Examples of acceptable scenarios: an established 20-room aparthotel with 2+ years of accounts; a conversion led by an experienced operator with a strong business plan; or an asset-backed loan for furnishings when property security is limited.

---

Common funding challenges — and how to mitigate them

• Seasonality: present a 12-month cashflow and show how you manage low months (reserves, lines of credit).
• Planning or licence uncertainty: secure written confirmation from local authority or show contingency plans before applying.
• High OTA dependence: demonstrate corporate or direct-booking initiatives and show net revenue after commissions.
• Short security availability: use asset finance for FF&E or specialist unsecured facilities for smaller needs.
• Poor personal credit for directors: some specialist lenders focus on business performance rather than director credit; a broker can identify these lenders.

---

Real-life examples (anonymised)

Refurbishment for established aparthotel — £200k
A 20-room aparthotel needed a targeted refurbishment to justify higher ADR. UK Business Loans matched the operator with a lender offering a staged refurbishment facility plus a short-term working capital top-up. Outcome: staged drawdowns tied to works, refinance into a longer-term commercial mortgage on completion.

Conversion & purchase — bridging to mortgage
An investor bought a six‑flat block to convert into serviced accommodation. A short-term bridging loan secured the purchase; once conversions and initial bookings were in place, the bridging was repaid via a commercial mortgage based on projected ADR and occupancy. Exit planning was critical to lender approval.

Multi-site growth with mixed credit profiles
A regional operator expanding to a third site had strong trading accounts but one director with adverse credit. We introduced a specialist broker who structured a mix of invoice finance and asset-backed lending while the operator worked on credit remediation. The operator kept trading while securing new funding.

---

How UK Business Loans helps — our process for aparthotels & serviced accommodation

1. Complete the short enquiry (takes around 2 minutes) — Get Quote Now — Free Eligibility Check.
2. We analyse your needs and match you to lenders/brokers with relevant appetite (property finance, refurbishment, asset finance, bridging or cashflow solutions).
3. Lenders/brokers contact you for an eligibility check and quote; you compare offers and decide whether to proceed.

Benefits: faster matching to sector-aware providers, no-obligation quotes, and fewer wasted applications. Expect an initial response often within hours during business days.

---

What you’ll need to apply — checklist

• Company details and contact information
• Last 12–24 months of management accounts and bank statements
• Occupancy, ADR and forward bookings reports
• Property lease or title documents and any planning/licence paperwork
• Quotes for works or asset purchases (if seeking refurbishment or asset finance)
• Proof of ID for directors
• Brief business plan and cashflow forecast for conversions or development finance

Ready to send these? Start with a Free Eligibility Check: Get Quote Now.

---

Typical costs & terms — clear guidance

Costs vary by finance type, security and credit profile. Indicative guidance (illustrative only): unsecured business loans often carry higher rates than secured mortgages; bridging rates are typically higher due to short-term risk; asset finance and commercial mortgages can offer more competitive pricing when security is in place.

Expect arrangement fees, valuation/legal fees and potential early repayment charges on some facilities. Your chosen lender or broker will provide full, itemised costings in any quote. UK Business Loans charges no fee for introductions.

---

Frequently asked questions

Can I get finance if I don’t own the property?
Yes. Many lenders will consider leaseholders or management companies. Eligibility depends on lease terms, income history and whether the landlord permits short-term lettings. Asset finance is an alternative where property security is unavailable.

Will applying affect my credit score?
Filling the UK Business Loans enquiry form does not affect your credit score. Lenders may carry out credit checks later if you choose to proceed with an offer.

Can a newly converted aparthotel get funded?
Start-ups or newly converted properties can access funding, but lenders often require stronger evidence: experienced operators, detailed forecasts and forward bookings improve chances.

How quickly will I receive quotes?
Many partners respond within hours to an initial eligibility check. Full offers for mortgages or development finance can take several days to weeks depending on valuations and due diligence.

Do you work with specialist hotel lenders?
Yes — we match you with mainstream and specialist providers who understand hospitality trading. For sector-specific detail on conventional hotel lending, see our page on hotels business loans.

What if I have past credit issues?
Some specialist lenders and brokers assess business trading performance more heavily than director credit. Provide full details early so we can match you to an appropriate partner.

---

Next steps — ready to explore funding?

Complete our short enquiry now and receive a Free Eligibility Check. We’ll match you with lenders and brokers that understand aparthotels and serviced accommodation — fast, confidential and no obligation.

Get Quote Now — Free Eligibility Check

---

Trust & privacy

We work with a broad panel of lenders and brokers. UK Business Loans is an introducer — we are not a lender and do not give regulated financial advice. Your details are shared securely and only with partners who can help with your request. See our Privacy Policy and Terms for full details.

1. Can aparthotel and serviced accommodation operators get business loans in the UK? — Yes; operators can access business loans, commercial mortgages, bridging, development/refurbishment finance and asset finance from specialist and mainstream lenders via introducers like UK Business Loans.
2. What types of finance are best for conversions, refurbishments and furnishings? — Common options are staged development/refurbishment loans, short-term bridging to refinance into a mortgage, and asset finance (leasing or hire purchase) for FF&E.
3. How do lenders underwrite serviced accommodation businesses? — Lenders focus on trading history, occupancy, ADR and RevPAR metrics, forward bookings, management accounts, planning/licence status and available security or guarantees.
4. Can I get finance if I’m a leaseholder or don’t own the property? — Yes; many lenders will consider leaseholders or management companies, and asset finance is often available where property security is limited.
5. Will submitting the UK Business Loans enquiry affect my credit score? — No; completing the enquiry is a soft introduction that does not affect your credit score, though lenders may carry out checks later if you proceed.
6. How quickly can I expect lender quotes and offers? — Matched lenders and brokers often respond within hours to an eligibility check, while full offers (mortgages or development finance) typically take several days to weeks.
7. What documents do I need to apply for serviced accommodation finance? — Lenders usually require company details, 12–24 months management accounts and bank statements, occupancy/ADR/forward booking reports, property title/lease and planning/licence paperwork, ID and quotes for works or assets.
8. Can newly converted aparthotels or start-ups secure funding? — Yes; newly converted properties can be funded if supported by experienced operators, robust forecasts, forward bookings and a clear exit plan for short-term facilities.
9. How does seasonality and OTA reliance affect my chances of funding? — Seasonality and high OTA commission increase perceived risk, so lenders expect a 12‑month cashflow plan, strategies to diversify bookings and net revenue figures after fees.
10. What fees and costs should I expect when arranging finance for an aparthotel? — Expect variable interest rates by product, arrangement, valuation and legal fees, potential bridging or exit fees and possible early repayment charges, with full itemised costs provided in lender quotes.