Acorn Commercial Desk · Hospitality, Licensed Trade & Leasehold Finance

Hospitality Finance: Freehold Mortgages & Niche Leasehold Business Loans

Bespoke funding for pubs, hotels, restaurants, bars and leisure venues across the UK. Whether you are acquiring a freehold asset or securing leftfield leasehold goodwill capital, we finance trading cashflow.

Get Hospitality Term Sheet Explore Freehold Buyouts (Pub90)

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Sector Breakdown

Four Core Hospitality Business Types

Each venue type is underwritten differently — from Fair Maintainable Trade multipliers on freehold pubs to goodwill-backed lending on short leases.

FREEHOLD & LEASEHOLD

Pubs, Inns & Licensed Bars

Community locals, destination gastropubs, city-centre bars and coaching inns — tied, partially tied, or free-of-tie.

Freehold: up to 75%–80% LTV based on Fair Maintainable Trade (FMT) / EBITDA trading multipliers.
Leasehold: business acquisition loans, tied-to-free-of-tie lease conversions, and goodwill funding.

Sitting pub tenant buying your freehold? Explore our 90–100% Pub90 program

GOING CONCERN VALUATIONS

Hotels, Guest Houses & Boutique Stays

City hotels, coastal B&Bs, boutique country inns, and wedding venues.

Financed on EBITDA multiples (typically 6x–10x adjusted trading profit).
Refurbishment and room-expansion lines available alongside the senior facility.

Hotels & guest house finance hub

HIGH CASHFLOW

Restaurants, Cafes & Fast Food Outlets

Fine dining, casual dining chains, QSRs, dark kitchens, and takeaway freeholds or leaseholds.

Equipment refinancing and kitchen fit-out capital.
Key money / premium funding and leasehold goodwill loans.

SPECIALIST LICENSED VENUES

Nightclubs, Event Venues & Entertainment Outlets

Live music venues, late-night bars, event spaces, and multi-concept leisure complexes.

Specialist non-standard underwriting accepting late-night licence revenues.
Structures built around seasonal cashflow fluctuations and event-led income.

The Capital Spectrum

Freehold Security vs. 'Leftfield' Leasehold Lending

Property-backed mortgages and cashflow-backed business capital solve two very different problems. We arrange both.

Freehold Commercial Mortgages (Property-Backed)

Security: Bricks and mortar property plus trading goodwill.
Max LTV: 70%–80% of Open Market Value (or Fair Maintainable Operating Profit).
Repayment Terms: 10 to 30 years amortisation.
Best For: Owner-occupiers buying trading premises, or sitting tenants acquiring freeholds from breweries and pubcos.

Niche & 'Leftfield' Leasehold Capital (Cashflow & Goodwill Backed)

Security: Leasehold agreement plus trading cashflow and a company debenture — no freehold required.
Specialised Coverage: Short leasehold funding: financing leases with under 10–15 years remaining.
Goodwill & premium capital: borrowing against historical trading profits to fund leasehold key money or purchase price.
Lease extensions & freehold options: capital to buy out remaining lease terms or convert tied leases to free-of-tie.
Unsecured & top-up business loans: merchant cash advances, equipment finance, and working capital lines for refurbishment.
Repayment Terms: 1 to 7 years flexible business loans.

Special spotlight · Pub90

Sitting Pub Tenant? Buy Your Freehold with a 10% Deposit

The Opportunity

If you currently run a pub under a lease agreement and the landlord or brewery offers to sell you the freehold, standard banks require a 25%–30% cash deposit — money most operators have tied up in the business.

The Acorn Solution

Our Pub90 program uses married value and your trading history to fund up to 90%–100% of the freehold purchase price, so the deal is decided by the trade you have already built rather than the cash you can spare.

Explore Pub90 Freehold Buyouts

Interactive Tool

Hospitality EBITDA & Borrowing Calculator

Model your freehold borrowing power, leasehold cashflow facility, and debt service coverage from your trading figures.

Annual Turnover£850,000

Adjusted Annual EBITDA / Net Profit£140,000

Tenure Type

Proposed Loan Term20 years

Estimated Freehold Borrowing Power£840,000

Estimated Leasehold Cashflow Facility£280,000

Estimated Debt Service Coverage Ratio1.72x

🟢 Strong Coverage (DSCR 1.72x) — trading profit comfortably services a 20-year facility of £840,000.

Check Hospitality Eligibility

Indicative illustration only. Freehold power applies a going-concern EBITDA multiplier (£1,120,000 assessed value) at 75% LTV; leasehold facilities are modelled on adjusted EBITDA and repaid over up to 7 years at an indicative 7.5%. All terms subject to valuation, full underwrite and status.

Important Tax & Financial Advice Notice

Acorn Finance is a specialist credit broker authorised and regulated by the FCA (#660207), not a tax advisory firm or accountant. Hospitality property acquisitions, leasehold goodwill valuations, OpCo/PropCo tax structures, Capital Allowances on pub and hotel fixtures, and VAT on commercial transfers (TOGC — Transfer of a Going Concern) carry distinct financial implications. The information provided on this page is designed to highlight key structural concepts so you can lead an informed discussion with your qualified accountant or chartered tax specialist.

Knowledge & Next Steps

Related Hospitality Finance Guides

Pub90: Freehold Buyouts for Sitting Tenants

Buy your pub freehold with as little as a 10% deposit.

Hotels & Guest House Finance Hub

Going-concern EBITDA lending for hotels, B&Bs and boutique stays.

Owner-Occupied Commercial Mortgages

Stop paying rent and own your trading premises.

Revolving Credit Facility for Working Capital

Rolling credit lines for refurbishments, stock and seasonal cashflow.

Frequently Asked Questions