Funding For Hotel Fit Outs

Leasing, asset finance and business loans are a key source of funding to the UK hotel fit out sector. Here at Fit Out Finance, we can arrange finance for a small privately owned single hotel through to the largest UK hotel brands.

Many of our clients are small independent hotel groups operating estates with up to five hotels. The UK hotel sector is a growing market, with over 45,000 hotels in the UK servicing about 750,000 hotel rooms. We are proud to be involved in this sector and to assist in its development.

Finance and funding is one of the key factors that all hotel business owners must take into account when looking to buy or develop a hotel, or later looking to upgrade or refurbish it.

Hotel premises fit out finance and the use of bank funding

In most cases, our clients have good relationships with banks who have funded their freehold or long-leasehold premises. Smaller chains may have a high net worth individual backing the operation or have been able to source funding from other business loan companies.

So where does Fit Out Finance step in? We are happy to fund refurbs, rolling maintenance or major new projects, usually without taking any security over the property. The great news is that any lease, asset finance or business loan we put in place will not affect your existing hotel funding facilities.

What do hotel owners look to finance via Fit Out Finance?

Ongoing Refurbishment

As every hotel owner knows, there is always something that needs replacing or repairing.

Sometimes this replacement justifies leasing in its own right and we are certainly happy to help, however in many cases the cost doesn’t justify a stand-alone arrangement, or it may just be easier to pay from cash.

This is why we have created a cash-return (sale and lease back) facility, which enables the hotelier to pay suppliers directly, where after we will reimburse the money when overall spend is more substantial – up to six months after the expenditure has been incurred.

Major refurbishment or expansion projects

Often running to millions of pounds, several of our hotel clients have embarked on substantial projects where the core development cost is covered by their bank.

On these projects, pre-start costs often run well into six figures whilst the ‘bits and pieces’ of furniture, lighting, soft furnishings etc add a healthy sum on top of that.

We have been pleased to fund the costs of surveyors, designers and preliminary work as well as some fairly esoteric assets such as sub-stations and septic tanks.

Hotels undertake many different forms of refurbishment or expansion. Some of the other key areas where we can arrange finance for a hotel are:

  • Financing for a hotel gym, spa and swimming pool complex
  • Leasing for hotel catering equipment and kitchens
  • Asset finance for CCTV systems and parking security barriers
  • Funding for hotel bedrooms, audio visual equipment
  • Leasing for refurbishment of a bar, reception area
  • Lighting, and changing light bulbs to LED technology
  • Reservation software systems, IT equipment, EPOS, and hotel telephones
  • Finance for hotel Start Ups

    Starting a hotel doesn’t come cheap. In most cases the new owner will want to start making changes, either to tired equipment or implement a rolling refurbishment program to establish their brand.

    Fit Out Finance are happy to support start-ups who are replacing or adding equipment to their new premises.

    Similarly if you have already incurred expenditure on equipment we can offer sale-and leaseback facilities to return much-needed cashflow.

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