Hospitality industry statistics indicate that there are currently more than 55,000 hotels and guest houses in the UK, employing around 1.5 million people. The UK hotel market can be divided into four main categories:
1. Big City Hotels:
Usually the most expensive to purchase, particularly in London. The range of facilities offered can vary considerably, depending on the target clientele, but because these hotels offer the chance of good occupancy rates, all year round, potential profits are high.
2. Town Hotels:
Not usually recommended for first time hotel buyers; owners can often find it difficult to define a suitable (and profitable) niche in the market for their establishment, although a high quality restaurant can be a sure-fire winner.
3. Resort Hotels:
Buyers should not underestimate the effect of seasonal and climatic fluctuations when considering the purchase of a seaside or other resort-style hotel. Nevertheless, small resort hotels are popular with first time hotel buyers because purchase prices are often relatively low (compared to the general property market) and this type of hotel can be run successfully by a small number of staff.
4. Country Hotels:
In recent years, many country hotels have opened and have become highly successful ventures. However, the financial success of this type of hotel often depends more on its restaurant and banqueting facilities than on the accommodation provided. In quiet rural areas, hiring (and retaining) suitably qualified staff can be a major issue, in spite of the recent influx of hotel staff from Eastern Europe looking for employment.
Types of Hotel Mortgages
Specialist brokers are able to arrange commercial hotel mortgages for a variety of purposes on behalf of both new and current hotel proprietors. They can be used for:
- Initial purchase of a hotel
- Current tenant purchasing hotel freehold
- Buying out a partner’s share in a hotel
- Refurbishment of bedrooms, restaurants and public areas
- Adding extra bedrooms
- Adding extra facilities, e.g. fitness centre, conference rooms
- Consolidation of existing loans at a lower rate of interest
Summary
- Commercial mortgages are available for both the purchase and refurbishment of hotels
- The UK hotel market can be divided into four major categories: large city hotels, town hotels, resort hotels and country hotels
Access Commercial Mortgages can help with all commercial finance needs; contact us today for a fast response.
For an immediate quote - Click here!Leisure Industry Mortgages
Commercial Pub Finance
Financing Hotel Franchises
Fitness Centre Finance
Holiday Business Mortgage
Hotel Mortgage
> Hotel Purchasing
Independent Pubs
Pub Mortgage Basics
Restaurant Competition
Restaurant Franchises
Restaurant Mortgage Basics
Featured financial products
Agricultural Mortgages
At Access Commercial Ltd we have a dedicated agricultural finance department which deals specifically with agricultural mortgages. Understanding the agricultural laws and restrictions plays a key part in deciding the type of mortgage lender best suited to…
Bed and Breakfast Mortgages
If you are thinking about purchasing a B&B Access Commercial Ltd can help. We can provide up to 100% mortgages and finance solutions tailored to your specific needs. Our finance department offers help and advice with all aspects of Bed and Breakfast p…
Land Mortgages
If you are thinking about purchasing land or need to re-finance your existing plot Access Commercial Ltd can help. We work with all the land mortgage lenders in the UK and can provide up to 100% mortgages and finance solutions tailored to your specific ne…
Short Term Business Finance
Have you had previous problems with business funding solutions? Access Commercial are here to help. It used to be that the only was to raise money for your business was either with your current bankers through a business loan overdraft or via a commerc…