Hotel, B&B and guest house bridging loans
Bridging finance for hotels and guest houses.
Hotel bridging loans fund the purchase, refinance or refurbishment of a hotel, B&B or guest house in weeks rather than months: to buy one that is underperforming and turn it around, refurbish the rooms before the season, or buy a building to convert. Fewer lenders take hotels than other commercial property, so below you can see who lends on them today and compare their products.
- Compare the bridging market
- We review your case and negotiate the best available terms
- Fast-track completion
Available products, lowest rate pm
- Regulated bridging
- 0.44%
- Loans above £1m
- 0.44%
- Commercial property
- 0.53%
- BoE Bank Rate
- 3.75%
- SONIA
- 3.74%
Recently completed
Bridging cases we've arranged.
Real cases our advisers have placed, from straightforward purchases to the ones other lenders turned down.
Hotel bridging, explained
What lenders look for in a hotel.
How a hotel is valued
Hotels are usually valued as trading businesses, by a RICS surveyor who specialises in hotels and leisure, who looks at what the hotel earns as well as the building. Lenders also look at a vacant possession value, as if the hotel had closed, and many lend against the lower of the two. A hotel that is closed or trading poorly is valued mostly on the building, which is why its loan to value is often lower.
What the lender will ask about
- Trading accounts, and figures such as occupancy and the average room rate, including how they change through the year.
- Your experience of running hotels, or that of the manager or operator you will use.
- Whether it is freehold, and its licences, such as a premises licence for the bar.
- Its condition, and the cost of any refurbishment you plan.
- How you will repay the loan: your exit.
How hotel bridging loans are repaid
- Refinancing onto a commercial mortgage once trading has improved and shows in the accounts.
- Selling the hotel as a going concern.
- Converting it, for example into flats, which needs planning permission, then selling or letting them.
B&Bs and guest houses
Many smaller guest houses include the owner's home. If you or your family will live there and it makes up at least 40% of the property, the loan may be regulated by the Financial Conduct Authority, which gives you extra protections. Tell us how the property is used and we'll check.
A worked example
You agree to buy a 20-bedroom seaside hotel for £1,200,000. It has traded poorly for two years and its rooms need refurbishing. The lender values it at £1,200,000 and lends 60% of that: £720,000 for 18 months, with the interest rolled up. You put in the rest and pay for a £150,000 refurbishment yourself, reopen the rooms in time for the summer, and refinance onto a commercial mortgage once a year of better trading shows in the accounts.
These figures are only an illustration. The rate, fees and how much you can borrow depend on the lender and your circumstances.
Hotels and guest houses on our panel today
- Lenders
- 42
- More on referral
- 1
- Rates from, per month
- 0.59%
- Maximum loan to value
- 80%
Live figures from the lenders on our panel, 1st charge. The rate you're offered depends on your loan, the property and your circumstances.
Compare hotel bridging loans 020 7580 1555How it works
From first figure to funds released.
We're not tied to any lender, so every quote reflects the whole market, not whichever lender we know best.
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Compare the whole market
Bridging solutions from a wide range of lenders, private banks and specialist funds.
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Tailored rate sourcing
Our advisers review your case and negotiate the best terms available across the market.
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Fast-track completion
We manage the application so your offer and completion land exactly when you need them.
FAQs
Your questions, answered.
Can I get a bridging loan on a hotel?
Yes. A number of specialist lenders lend on hotels, B&Bs and guest houses, though fewer than lend on offices or shops, and usually at a lower loan to value. The figures on this page show how many lenders on our panel lend on them today.
Can I get a bridging loan on a closed or failing hotel?
Often, yes. The lender will value it mainly on the building and want a clear plan to reopen, sell or convert it, with costs if it needs work.
Can a bridging loan pay for refurbishing a hotel?
Yes. Light refurbishment bridging covers work such as new bathrooms and redecoration; heavy refurbishment covers structural work, extensions and conversions. Choose the right one in the form above.
Do I need hotel experience to get a bridging loan?
It helps a great deal. Lenders want to know who will run the hotel, so if you haven't run one before, tell us about the manager or operator you plan to use.
How quickly can a hotel bridging loan complete?
Usually within a few weeks of applying. Hotel valuations can take longer than other property, because they need a specialist surveyor and trading information, so it helps to have your accounts ready.
About us
A whole-of-market bridging broker.
Bridging Eye is a trading style of Stirling Partners Finance Ltd. We're a bridging finance broker with access to the whole of the market — not tied to any single lender — so every quote reflects a genuinely broad set of options rather than a fixed shortlist.
We arrange both regulated bridging loans (where you or a family member will live in the security property) and unregulated bridging finance for investment, business, and commercial purposes. Because every lender we work with prices and underwrites differently, we compare across the market for your specific circumstances — loan size, property type, region, term, and exit strategy — rather than defaulting to whichever lender we know best.
Stirling Partners Finance Ltd is regulated and authorised by the Financial Conduct Authority (FRN: 304236). See the footer below for our full regulatory and company details.
Authorised & regulated by the FCA · FRN 304236Talk to a broker
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020 7580 1555Our brokers answer calls and messages Monday to Friday, 08:00 to 18:00.