There are indeed; lots of lenders offer hotel financing, although it is essential to compare costs and rates to ensure you are getting the best deal.

Lenders will look at several criteria, to determine the maximum they can lend - these include things like the business plan, profitability forecasts and current trading status.

Given the unique nature of each hotel business, a lender will assess every application independently. The criteria they will look at include:

• Your Experience as a Hotelier

If you are an experienced industry professional and have a track record, then you present a lower risk and will achieve more competitive rates.

When investing in a business without being a hands-on manager, a lender will want to consider your key personnel. They may also look at licenses and permissions in place.

• Size of Hotel Business

Hotels make profits dependent on their capacity and level of occupancy. Lenders will assess the revenues achieved per available room, and your average daily rates to assist with affordability calculations.

If the hotel is new, or due to undergo refurbishment, a lender is likely to ask for the business plan to see what the plans and projections look like.

• Business Profitability

If you have two years of trading history and can demonstrate profitability, you will have more lending options and be able to meet affordability criteria.

• Hotel Marketing and Business Plans

To review the likely success of the business, a mortgage lender will ask for business plans and marketing strategies to assess the risk factor.

• Location of the Business

Your location is key to the success of the hotel, where the bulk of the trade is reliant on tourism or convenience. If your hotel is close to a central location, entertainment venue, transport hub or popular attraction, lenders will perceive the loan as lower risk.

While these are the most important criteria a lender will consider, there are always options to negotiate or liaise with lenders who specialise in niche lending. If you are a new hotel owner or don't have a track record of accounts, give the Revolution team a call on 0330 304 3040.

If you can present a robust application that meets all of the lending criteria, you will be offered more competitive interest rates.

For example:

• Demonstrating industry experience.
• Having acceptable occupancy levels.
• Sharing a healthy marketing plan.
• Providing information on projected profits.

Indeed, you can apply for a commercial mortgage to finance a hotel refurbishment. The most efficient lending product will depend on the scope of the refurbishment, since smaller loans under £25,000 may be cheaper to finance through a loan.

If the renovation is significant, this could have a dramatic impact on profitability.

In this case, lenders will find it easier to finance the refurbishment.

Hotel businesses have a range of lending options to choose between, such as:

• Asset finance.
• Bridging lending.
• Business lending.
• Development loans.

Asset finance means raising capital through security against assets, such as equipment, vehicles and property.

While this is a viable way for a hotel to raise finances, it depends on the budget required, as a more considerable investment or refurbishment might be better off funded through a commercial mortgage or loan.

Bridging loans are a good option for fast hotel investments and are usually more flexible than hotel mortgages. This can be useful for investing via auction, or when a quick completion is advantageous.

This type of finance is short-term and usually lasts between one and three years. You will therefore need an exit strategy, such as mortgaging the property, or selling the asset, before a lender will be able to accept a bridging loan application.

Development finance is a good option for a new hotel build, or significant conversions and improvements.

This lending is similar to bridging finance in some ways, but the capital is released from the lender in tranches as stages of the build or refurbishment are completed.

As a plus point, you only pay interest on funding already drawn down.

Like a bridging loan, you'll need to have an exit strategy, and most lenders will want to assess this before they can make an offer.

Yes, you can borrow via a business loan as a hotel business. Most small loans are limited to around £25,000 and are usually unsecured.

UK lenders offer a range of commercial lending for hotels, and the right option depends on what you want to borrow, for what reason, and for how long.

For example, if you have multiple investment properties, you could use a commercial remortgage to release equity.

The Revolution Brokers team are experts in commercial financing and can provide advice on the most cost-effective and suitable form of financing for your hotel business - give us a call on 0330 304 3040 to discuss.

Typically, a lender will want at least a 25% deposit for a hotel mortgage, and up to 40% depending on the risk level and type of mortgage you are applying for.

That means deposits from 25% upwards to 40%, depending on how closely you meet the eligibility criteria.

Hotel mortgages at 100% LTV are not standard, but they are possible. In this instance, you will need to provide alternative security, such as another asset, to offset the higher risk.

You should always consider the security offered, as this could be repossessed if you don’t keep up with the hotel mortgage repayments, and the lending is secured against another asset.

As a hotel investor with bad credit, it can seem impossible to secure a mortgage with a mainstream lender.

However, specialist commercial lenders can consider bad credit scenarios on their own merit. In this case, if you have a higher deposit, you have a better chance of securing the lending you need.

Revolution Brokers are an independent, whole-of-market broker - with an experienced consultancy team who liaise directly with the most competitive hotel mortgage lenders in the UK.

We can also advise on the best forms of financing, and help you analyse cost comparisons to make the most informed decision.