Our bespoke hotel development finance solutions provide cost-effective funding for all types of hotel construction, renovation and redevelopment projects. Whether this is your first hotel development project or you are looking to extend an existing portfolio, the team at UK Property Finance will help you find an unbeatable deal from a top-rated lender.
Working exclusively with the UK's most reputable development finance specialists, we provide a complete range of hotel development finance solutions under one roof.
UK Property Finance has extensive experience working with established construction companies, development firms, investment funds and hotel operators. Our products are suitable for large and small hotel development projects of all types, from repurposing existing properties to building new hotels from scratch.
Our goal is to help you present your proposal with the confidence and assurance needed to minimise borrowing costs and maximise your ROI. Whether you are planning ahead or in need of urgent funding for a project already underway, we can help.
When looking for development finance it is important to identify the type of project being planned by the developer in order to access the correct funding product. Types of works can include:
New builds nearly always require development finance loans. Once the project is completed, developers may use development exit finance as a more cost effective solution, but this cannot be done before the project is watertight.
for this type of project refurbishment finance is typically the correct type of loan to use, however if the project is larger than the norm, development finance may be a better alternative.
a refurbishment loan, which is a type of bridging finance, is generally used for property renovations. It can be used for various improvements including, installing a new roof, general structural changes, building an extension, refurbishment, and decoration.
Property investors or developers may want to buy property which needs development or completion work still doing and are unable to get funding from their bank. This is a typical scenario when a bridging loan is a suitable alternative.
Development finance loans are typically paid in one of the following three ways:
the total loan amount is paid in full, using the profits, when the project is complete, and the properties have been sold.
this usually happens when the developer wants to keep the development for either personal use or for rental purposes.
this type of short term loan is often used to fund a new development project before the current project is sold. It can also be used to give developers a bit of breathing space to complete minor works and find buyers.
If you plan on purchasing a hotel in any kind of condition, a long list of factors will be considered when assessing your eligibility.
Have you conducted adequate research on the locality? What kind of competition is there in the area? How well are the existing hotels nearby performing? How realistic are your long-term financial projections? What kind of profit margin are you expecting? What is a realistic timescale for the project's completion?
Importantly, the lender will also want to see that you have planned carefully for all eventualities. Your exit strategy will face particularly heavy scrutiny - i.e. your plan for repaying your development finance loan in full and on time.
Policies and procedures vary significantly from one lender to the next. However, the fundamentals of applying for development finance are fairly similar in all instances, which incorporate the following key stages:
Documentation requirements also vary from one lender to the next, but you can expect the following as the bare minimum:
For more information or any of the above or to get your hotel development finance application underway, contact a member of the team at UK Property Finance anytime.
Having access to funds for property development purposes allows borrowers to take on bigger projects than they would usually be in a position to finance.
The purpose of the facility is to provide the developer with additional time to sell their completed development, while keeping costs as low as possible.
Qualifying for finance as a first-time developer can be challenging. This is why it is advised to seek support of an independent broker at the earliest stage.
Our products are suitable for large and small hotel development projects of all types, from repurposing existing properties to building new hotels from scratch.
Joint venture development finance works in a similar way to conventional development finance. However, no deposit needs to be paid and rates are typically higher.
Mezzanine finance, aka mezzanine funding, effectively enables property developers to 'top up' their first-charge development finance facility to access extra funding.
No Personal Guarantee (PG) development loans are effectively a form of unsecured funding for major property development and construction projects.
Whether your goal is to maximise the value of a property you plan to sell or to boost rental income long-term, a refurbishment finance loan could be just the thing.
Senior debt development finance is the primary source of funds in the form of a first-charge loan. It is considered a lower-risk facility on the part of the lender.
Stretched development finance can be the perfect choice for investors and developers looking to stretch their own equity as far as possible with borrowing for up to 90%.
'Light refurbishment' is used for cosmetic upgrades and minor improvements. 'Heavy refurbishment' is used to raise funds for structural improvements.
Commercial property development finance can be used to fund, build or develop a property or be used to expand your current business property or space.