GOING CONCERN FINANCE
Freehold Hotel Acquisitions
Buying an actively trading hotel or guest house.
- Up to 75% LTV against the 'Going Concern' valuation (Bricks & Mortar + Goodwill).
- Term lengths from 10 to 25 years.
- OpCo/PropCo structures supported.
Acorn Commercial Desk · Hotels & Guest House Finance
Hotel Mortgages: Finance Your Freehold, Expand, or Refurbish
Bespoke commercial finance for boutique hotels, guest houses, and serviced accommodation. We unlock maximum borrowing power using EBITDA and Fair Maintainable Operating Profit (FMOP) valuations.
Prefer to talk? 0207 959 3882
Funding Solutions
Finance Built for Hotel Operators
Four specialist funding routes, each underwritten on trading performance rather than bricks and mortar alone.
BOOST REVPAR
CapEx, Refurbishment & Expansion
Re-investing in your asset to drive Average Daily Rate (ADR) and RevPAR.
- Capital release to fund room upgrades, spa additions, F&B (Food & Beverage) renovations, or EPC compliance.
- Drawdown facilities aligned with works.
LIFESTYLE BUSINESSES
Boutique B&Bs and Guest Houses
Smaller, independent hospitality assets often combining commercial income with owner's accommodation.
- Bespoke underwriting that accounts for seasonal cashflow.
- Funding for first-time operators with transferable business experience.
HIGH YIELD ASSETS
Serviced Accommodation & Holiday Lets
Multi-unit holiday complexes, serviced apartments, and coastal resorts.
- Commercial investment valuations based on aggregated seasonal income.
- Management contract structures accepted.
The Underwriting Metrics
How Lenders Value Hotels
Understanding these three pillars lets you present your business the way a hotel underwriter actually reads it.
EBITDA & FMOP Multipliers
Lenders don't just look at bricks and mortar; they look at cash generation. Hotel valuations are anchored to Fair Maintainable Operating Profit (FMOP) or adjusted EBITDA. A strong trading history directly increases your property's valuation and maximum borrowing amount.
ADR, Occupancy & RevPAR
Lenders stress-test your business plan using key hospitality metrics. Demonstrating a strategy to increase Average Daily Rate (ADR) and steady Occupancy % proves you have the cashflow to comfortably service commercial debt.
Experience & Management Teams
Are you an owner-operator or an investor utilizing a hotel management company? Lenders adjust LTVs and rates based on the strength, CV, and track record of the team actually running the venue.
Interactive Tool
Hotel Valuation & Borrowing Calculator
Estimate your going concern valuation, maximum commercial mortgage and required equity from your trading figures.
£1,200,000
£300,000
Industry Multiplier
Loan to Value Target
Margin check: at £1,200,000 turnover, your £300,000 EBITDA represents a 25.0% operating margin — lenders typically look for 20%–35% in hotel trading businesses.
Estimated Going Concern Valuation£2,100,000
Maximum Commercial Mortgage Available (65% LTV)£1,365,000
Required Cash Deposit or Equity£735,000
Valuation = £300,000 EBITDA × 7x multiplier = £2,100,000. A 65% advance releases £1,365,000 of senior debt.
Check Hotel Financing EligibilityIndicative illustration only. Going concern values are confirmed by an independent RICS valuation on Fair Maintainable Operating Profit; multipliers and LTVs vary with asset quality, location, brand and operator track record. 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. Hotel acquisitions, claiming Capital Allowances on specialised fixtures and fittings, Transfer of a Going Concern (TOGC) rules for VAT, and OpCo/PropCo corporate structures carry complex legal and tax 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 hospitality tax specialist.
Knowledge & Next Steps
Related Hospitality Finance Guides
Hospitality & Licensed Trade Hub
Freehold and leasehold finance for pubs, restaurants and venues.
Pub90: Freehold Buyouts for Sitting Tenants
Buy your pub freehold with as little as a 10% deposit.
Owner-Occupied Commercial Mortgages
Stop paying rent and own your trading premises.
Refurbishment & Conversion Finance
Light and heavy refurbishment funding for trading and investment assets.
Frequently Asked Questions