How does hotel development finance work?
Typically structured as short- to medium-term loans, hotel development finance covers various stages of a project’s lifecycle. Lenders assess factors such as the project’s feasibility, projected revenues, location, and the developer’s experience. Funds are usually released in stages, aligned with the completion of specific development milestones, ensuring that the project progresses as planned.
Who is hotel development finance for?
This financing solution is ideal for:
Property developers: Individuals or companies looking to construct new hotel properties.
Hotel owners: Existing owners aiming to refurbish or expand their current establishments.
Investors: Parties interested in entering the hospitality sector through the development of new hotel projects.
Commercial developers transitioning to residential: Developers looking to convert or repurpose hotels and other commercial properties into residential developments.
Types of hotel development finance offered by Assetz Capital
At Assetz Capital, we provide tailored financing solutions to meet the unique needs of hotel development projects:
Development finance. Designed for ground-up construction projects, this financing option supports the building of new hotel properties from inception to completion.
Bridging finance. Ideal for situations requiring quick capital, such as property purchases, land acquisition, or refurbishment projects.
Residential refurbishment. For developers repurposing hotels into residential properties, our Refurbishment Finance provides capital for structural changes, interior conversions, and compliance upgrades to meet residential standards.
Commercial Mortgages. For established businesses looking to invest in hotel properties, our commercial mortgages provide the necessary funding to purchase or refinance hotel assets.
By partnering with Assetz Capital, you gain access to a team of experts dedicated to helping you realise your hotel development ambitions. Our bespoke financing solutions are designed to align with your project’s specific requirements, ensuring a seamless path from concept to completion.
Why choose our Development Finance?
Higher initial, day 1 advances.
We understand that cashflow is vital at the start of a project and that’s why we offer higher advances from day 1 – giving you greater confidence to manage your supply chain and liquidity at the time you need it most. One of our national team of Relationship Directors will be able to explain how we structure our development finance when they come to meet with you.
24 hour, credit backed decision making.
We know that a development project can be a significant financial undertaking and so you need a quick response from your lender. That’s why we provide you with a credit backed decision within 24 hours.
Multiple project funding.
Unlike many of our competitors, we can fund multiple projects. So if your current lender won’t consider your next scheme – come and speak to us!
Relationship Directors right by your side.
We know that every development is unique with its own set of challenges and that’s why we have a team of highly experienced Relationship Directors who will be by your side every step of your project. They are based in your region and understand the dynamics of your local market.
Dedicated Development Monitoring Director.
On top of providing practical expertise from your Relationship Director, you will be supported by Jonathan Witter, our Development Monitoring Director. Jonathan will visit you on site throughout your project, as well as managing the external monitoring surveyors (who produce their valuation reports every month for the drawdown of funds).
Decision making by humans.
Our lending decision making is driven by our practical, common sense approach rather than a computer checklist. At Assetz Capital, we consider each project on its individual merits and will happily work alongside a first time developer or a seasoned professional. Our evaluation is undertaken on a LTGDV (loan to gross development value) basis rather than LTC (loan to completion). That means we are more flexible in the terms we offer. Plus, we also factor in the level of presales into our assessment.
