How much deposit do I need to buy a hotel?

Typically, lenders require a 25% to 30% deposit (a 70% to 75% Loan to Value). If you are buying a poorly performing hotel to turn around, the required deposit may be higher as the trading history will not support maximum borrowing.

Can I get a mortgage to buy a closed or non-trading hotel?

Yes, but a standard commercial mortgage won't apply as there is no trading income. We usually structure this with short-term bridging finance to fund the purchase and refurbishment, refinancing onto a standard mortgage once the hotel is open and generating revenue.

How long does a hotel commercial mortgage last?

Terms typically range from 10 to 25 years. Longer terms reduce your monthly repayments, easing cashflow, though you will pay more interest over the life of the loan.

What experience do lenders look for?

Lenders prefer applicants who have managed hotels, pubs, or restaurants. If you lack direct experience, they will look at your general business acumen, or whether you are retaining the existing management team or hiring a specialist manager.

What is "Fair Maintainable Trade"?

It is a valuation concept used by lenders to assess what revenue and profit a reasonably efficient operator could generate from the hotel, rather than just looking at what the current owner is achieving.

Buying a Hotel

Commercial mortgages for hotel acquisitions

Name: Sorbus Finance
Address: Sunny Bank, 12 Albion Road, Chesterfield, Derbyshire, S40 1LJ, GB
Telephone: +441246383500

Purchasing a hotel requires a specialist approach to valuation and lending. We arrange commercial mortgages that recognise the value of the trading business—not just the bricks and mortar—whether you are a first-time buyer or expanding a portfolio.

Speak to an Adviser Hotel Finance Hub

Speak with Arran or Graham

Typically 70-75%

Max LTV

25 years

Terms up to

Fair maintainable trade

Valuation

150+

Lenders on panel

How we structure hotel purchases

Independent broker with an extensive panel of 150+ UK lenders. No upfront fees.

Valuation based on performance

Unlike standard commercial property, hotels are valued on their EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) and Fair Maintainable Trade. We work with lenders who understand hospitality economics.

Support for new entrants

While lenders prefer previous hospitality or management experience, we can secure funding for first-time buyers provided they have a strong business plan, transferrable skills, and a suitable cash deposit.

Interest-only periods

If the property requires immediate refurbishment upon purchase, we can often negotiate initial interest-only periods. This preserves your cashflow while the hotel is being upgraded before full trading commences.

Portfolio expansion

If you already own a successful hotel, we can help you refinance your existing property to release the equity needed to fund the deposit for your next acquisition.

Who you could speak to

Arran Turner

Managing Director

General commercial finance and how Sorbus works

Profile

Graham Nash

Commercial Finance Director

Business loans, cash flow and wider commercial funding

Profile

STEP 1
A conversation with a broker
You talk to a real Sorbus broker about the business, the purpose and what is affordable. No application at this stage.
STEP 2
Credit placement
If you choose to go further, we prepare the case and decide which lenders on our panel of 150+ are worth approaching.
STEP 3
Lender assessment
The lender, not Sorbus, underwrites and makes the credit decision. Approval is never guaranteed.
STEP 4
Documentation
If a lender offers terms and you accept, we help coordinate agreements and payout paperwork with you.

Every step after the first is optional. You can stop after the conversation. Sorbus is a broker, not a lender.

Client journey

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Enquire about Hotel Purchase Mortgage

Start with a conversation

Tell us a little about what you need and who you would like to speak to. No obligation, no credit check at this stage. We aim to respond within one business day, Monday to Friday, 9am to 5:30pm.

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01246 383500

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Unique to Sorbus Finance

Optional: Business Finance Health Check

Before you approach lenders, understand your borrowing readiness with our free Business Finance Health Check, tailored for UK businesses.

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Questions answered

Common queries about buying a hotel.

Ready to make your acquisition?

Speak to a specialist commercial mortgage broker about funding your hotel, B&B, or guesthouse purchase.

01246 383500 Hotel Finance Hub