Bridging Loan for Hotel

Short-term property finance to give you speed, flexibility and buying power in the property market.

Borrow from £50,000 to £25m for 12 months, from as low as 0.54% per month.

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Bridging Loans for Hotels

Bridging finance is a powerful high-value lending option for hotel owners, allowing you to leverage the equity in the core property of the business to raise significant capital. Clifton Private Finance are specialists in bridging and property finance - partnering with us gives you the backing to thrive in the hospitality industry. Learn more about bridging finance for hotels.

Key Takeaways

  • Bridging finance for hotels provides large-scale capital for purchase, renovation, extensions, and more.
  • Leveraging equity in the hotel for security, both first- and second-charge bridging finance can be secured for up to £50 million.
  • Based on a clear exit strategy and using the hotel for security, bridging finance is often available when traditional mortgaging is unsuitable.
  • Working with Clifton Private Finance will open the door to cost-effective bridging finance that’s perfect for your needs.
  • Terms from 12 to 36 months
  • Secure against your existing property and the one you’re purchasing
  • Up to 80% Loan to Value
  • Residential and commercial properties accepted
  • Options for Non-UK residents

Bridging Case Studies

Low Cost Drawdown Bridging Loan for Development Exit | Case Study
Low Cost Drawdown Bridging Loan for Development Exit
Area
Kent
Capital Raised
£900k
Date
February 2025
Commercial Bridging Loan to Refinance Hotel Before Sale
Commercial Bridging Loan to Refinance London Hotel Before Sale
Area
London
Capital Raised
£13.8m
Date
January 2025
Resolving Complex Debt Issues with a Bridging Loan | Case Study
Resolving Complex Debt Issues with a Bridging Loan
Area
Romford
Capital Raised
£135k
Date
November 2024

See All Bridging Case Studies

Why Our Customers Trust Us

With expert guidance, bridging loans can provide an essential, versatile, and cost-effective solution to a wide range of property transactions.

Here are 3 reasons our clients trust our advice and service.

Market-Leading Rates

We provide access to market-leading rates for every client, thanks to our relationships with close to 100 bridging lenders.

bridging loans

Multi-Award-Winning Team

Our team of bridging advisers have over 40 years of experience and are qualified to the highest level. We're proud to have numerous customer service awards to our name.

bridging loans

Fully Independent

As an independent brokerage, we focus on your best interests when comparing finance: from costs and terms to speed of service.

Our Experts

Our dedicated bridging finance team are CeMAP qualified and have over 40 years of experience.

Meet The Team

Fergus Allen

Head of Bridging CeMAP

Mathew Phillips

Senior Finance Broker CeMAP

Paige Dumpleton

Finance Broker CeMAP

How We Work

1. Get a Customised Quote

Our bridging specialists will take a detailed look at your plan and provide a sense-check on whether it’s achievable, what the terms and cost estimates are, and if indeed bridging finance is the best route for you.

2. Secure A Decision in Principle

Within 24-48 hours, we should have your Decision in Principle secured from the lender. You can present this to estate agents and sellers to showcase your buying power. We can also speak to each party directly to strengthen your case.

3. Submit Your Application

When you’ve had your offer accepted, we’ll submit your application, and the valuation process and legal work can begin. We'll act as a mediator between all parties, making sure the deal is progressing as efficiently as possible and smoothing out any complexities along the way.

4. Finance Your Purchase

We will keep you updated and informed until you receive funds from the lender and your transaction is complete. And for any queries you have throughout the course of your loan, we’re always here to help.

Speak to a bridging specialist today

Make your property ambitions a reality and find out if bridging finance could work for you. We’ll guide you through the process and take care of the heavy lifting.

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Bridging loans for Hotels

with Fergus Allen & Sam Hodgson

Last Updated: 02/06/2025

Owning and running a hotel can often require funding support. Whether it’s in the early stages of hotel purchase, to allow for essential renovations to keep the hotel in premium condition, or for cash flow concerns during the hotel’s professional lifetime, debt financing represents a key tool for hoteliers.

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What is Bridging Finance?

Structured as a short-term funding solution that utilises the equity in property to secure significant sums of capital, bridging finance is fast and flexible, giving it advantages that traditional long-term financing, such as mortgages, cannot equal.

Often used for property purchases, developments, and renovation projects, bridging finance is perfect for hoteliers looking to make the most from their investment. To understand bridging finance, including an overview of the payment structure and exit strategies, read our in-depth Guide to Bridging Finance.

Why Choose Clifton Private Finance for your Bridging Finance Needs?

At Clifton Private Finance, our business bridging team is made up of experienced specialists who work every day to secure cost-effective, premium bridging finance for our clients. We offer:

  • Dedicated expertise in hotel financing - We are well-versed in hotel property transactions, across the UK and Europe, utilising large-scale bridging finance to raise sums up to £50 million.
  • Whole market lender relationships - With established relationships with decision makers across the range of bridging finance lenders in the UK, we offer customised lending arrangements tailored to your unique circumstances.
  • High loan-to-value - Using just your hotel for security, we can offer finance up to 80% LTV, releasing more equity for capital use.
  • Rapid turnaround - Our team work tirelessly to get your finance as quickly as possible. In many cases, a decision in principle can be raised the same day, with funds accessible in as little as 72 hours.
  • First- and second-charge funding options - With flexible products, we will match you with lenders who offer both first-charge bridging finance for hotel purchases, and second-charge bridges that work alongside your primary mortgage to provide funds for renovation.
  • Professional support - We will work with you throughout the process, developing a bespoke structure for your finance that works for you, developing a watertight exit strategy, and remaining on side from the moment of application until the loan term is completed.
  • Additional finance experience - Our business team are here to help you with any cash flow or financing needs. We can work with you to obtain a range of other funding products as-and-when needed, from merchant cash advances through to asset finance.

Whether you’re acquiring a new hotel, refurbishing an existing property for modernisation, or looking to undergo major renovations, we will find a swift, low-cost bridging solution that works for you.

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Reasons for Hotel Bridging Finance

The two key advantages to bridging loans are:

  • Fast - Long-term financing, such as mortgages or traditional asset-based secured loans, rely on complex underwriting for risk assessment. This means they can take many weeks to set up and often opportunities are missed while waiting for the funding to come through. Bridging finance is rapid, often in place within a week of application.
  • Flexible - Bridging finance has a tailored structure based on securities and an exit strategy that doesn’t require affordability checks or stress testing. It is not approved based on your income or credit rating, but on the value of your security and the assessed risk of your planned exit. For hoteliers with high-value property to use as collateral, and a clear plan for long-term stability, bridging finance is ideal.

Bridging finance is used in the hospitality industry for:

1

Property acquisition

 One of the prime uses of bridging finance is to buy the hotel initially. The speed of bridging finance, coupled with its application flexibility means it is extremely efficient at seizing opportunities. This makes it ideal for auction or off-market purchases where traditional mortgages are simply too slow to meet strict deadlines.

2

Hotel flipping

Investors looking to make profits through buying rundown hotel properties, undertake a full renovation project, and then sell on use bridging finance to snap up buildings at bargain prices. Bridging finance will cover the cost of the purchase and can also pay for the full renovation and construction stage, providing a single point of funding that facilitates rapid renovation and resale. With an exit strategy based off the sale of the redeveloped hotel, bridging finance for flipping is the best, most-flexible solution to capital requirements.

3

Hotel refurbishment

Whether for light renovations that are purely internal, or heavy construction changes, such as extensions and basement conversions, bridging finance provides the funding solution. The speed of bridging finance means work can begin right away, while its flexibility means buildings in a poor state can still be used as viable security. Once the property has reached prime standard, remortgaging for long-term finance as an exit strategy is merely a formality.

4

Debt refinancing 

Restructuring existing loans through bridging finance can lift cash flow burdens and provide the funds needed to put new expansion plans to work. A later hotel sale or remortgage for long-term repayment can form a solid exit strategy.

5

Hotel development

Businesses looking to build a hotel benefit from bridging finance. The quick application process allows developers to take advantage of opportunities in the fast-moving land market, often securing the site before full planning permission has been granted. Once planning is approved and architectural plans are drawn up, an exit strategy of long-term development finance replaces the bridging finance.

A Clifton Private Finance Success

The Bridging Finance Process

How can hotel bridging finance be obtained? Our process at Clifton Private Finance is well-structured and comprehensive:

  • Initial consultation - Our advisor will discuss your requirements in-depth. With a team of experienced bridging finance specialists, this conversation will make you aware of the options available as well as give you the confidence you need to move forward.
  • Tailored proposal - We will develop a customised financing solution that is unique to your hotel and the project, taking into account your business needs, the available equity for security, and your planned exit strategy.
  • Agreement in principle - With direct contact with the lenders suitable for your proposition, we will be able to secure a same day decision.
  • Valuation and underwriting - The lender will ensure a professional assessment is completed to value your property and understand your business financials.
  • Legal work - We work hand-in-hand with your legal team to make sure the process is as quick and efficient as possible.
  • Funds available - Depending on your circumstances, the funds will come through soon afterwards, as soon as 72 hours after the initial application.

Hotel Bridging Finance with Clifton Private Finance

Whether you’re a hotelier, developer, or entrepreneur entering hospitality, bridging finance could provide the funding power you need. Partnering with Clifton Private Finance gives you the support of industry experts, specialised in acquiring large-scale bridging finance for hotel projects. Speak to our team today and find out how we can support your hotel funding goals.

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Frequently asked questions

You can find the most common questions asked about bridging loans below. If you have a question that isn't answered here, please email us at helpdesk@cliftonpf.co.uk

About Bridging loans

Here are some of the most common alternatives to bridging loans:

  • Second-charge mortgages
  • Remortgaging
  • Equity Release
  • Personal Loan
  • Savings or Family Support
  • Development Finance
  • Commercial Mortgages
  • Refurbishment Loans

We break down each of these other financing tools in our full guide to alternatives to bridging loans

While none of these options provide the flexibility, loan size and low interest rates that bridging loans do for property transactions, you may find they are more appropriate finance options for your specific situation.

No, there is no strict age limit for securing a bridging loan. 

Bridging loans are typically 12 months in duration, which means that there aren't age limits in place like there are for mortgages that can last for 25+ years. 

The main example where age may be an issue is if you plan to refinance your bridging loan with a standard mortgage. In which case, you'll need to be eligible for a standard mortgage to qualify for your bridging loan - and if you are approaching retirement age, this could be an issue and you may be rejected for a bridging loan.

However, we work with specialist equity release and lifetime mortgage lenders that can provide a Decision in Principle for later-life lending (if it's feasible) so that your bridging loan can be approved if it makes sense with your broader strategy. 

No high street banks currently offer bridging loans. Instead, bridging loans are provided by specialist short-term finance lenders.

At Clifton Private Finance, we are a whole of market brokerage that deals with multiple bridging loan lenders, and we act as an intermediary between clients and the lender ensuring the process is smooth and hassle-free, and making sure our clients are getting a good deal.

There are two types of bridging finance: regulated bridging loans and unregulated bridging loans.

It simply depends on the intended use of the property you're purchasing. 

When you or a family member intend to live in the property you’re purchasing with your bridging loan, you’ll need a regulated bridging loan.

If you're getting bridging finance on property that you or a family member will not be living in, or if it’s a commercial property, then you’ll need an unregulated bridging loan (commercial bridge loan). 

And if you intend to sell the property to repay your bridging loan (flipping the property) instead of refinancing or selling another property, you’ll get an unregulated bridge loan.

Regulated bridging loans are authorised and regulated by the FCA and are usually locked to a 12-month maximum term.  Unregulated bridging loans, meanwhile, can have extended periods of up to 36 months and are generally more flexible.

If you’re unsure, it’s best to speak to a qualified adviser to go over exactly what you need and find the best bridging loan for you.

Yes, bridging loans are generally considered safe provided they are used for suitable property transactions. Speaking to a bridging loan adviser is recommended if you're unsure about the risks and suitability of a bridging loan for your situation. 

Generally speaking, the main risk of a bridging loan is that if you cannot repay the loan, your property can be repossessed and sold to clear your debt.

For example, if you take out a bridging loan to buy a new property but your existing property fails to sell and you cannot recoup the funds, this could become a risk. However, bridging lenders always require their own valuations for any property involved in a bridging transaction to combat this.

Another example could be that you're unable to secure a mortgage to refinance your bridging loan. At Clifton, we make sure your remortgage plans are sound if this is your bridging loan exit strategy, and can even arrange your mortgage for you through our dedicated mortgage advice service on the other side to smooth the process.

Repayments

You cannot turn a bridging loan into a mortgage, but you can repay a bridging loan with a mortgage and effectively refinance it into a long-term arrangement. 

This is common when buying an unmortgageable property with a bridging loan, carrying out refurbishments, and then mortgaging it once it is wind and water-tight and a new valuation has been carried out. 

This is also common for properties bought at auction where a mortgage would be too slow to arrange, and so a bridging loan is used which is then replaced with a mortgage later.

A bridging loan exit strategy is simply the way in which you plan to repay your bridging loan. 

The most common exit strategies are selling an existing property, selling the property you're purchasing, refinancing with a mortgage, or a combination. 

Other more unique exit strategies can include selling a business, receiving a pending inheritance, or receiving a large tax rebate.

You do not pay monthly instalments towards the capital loan of your bridging loan. Some bridging loans require you to repay the interest accrued each month, but most lenders will actually give you the option to roll this up into the loan value, meaning you repay it with your lump sum at the end and have absolutely no monthly commitments. 

It's worth noting that as soon as you pay off most bridging loans, you stop accruing interest - so, the quicker you pay it off, the less expensive it will be, and there are typically no ERCs (early repayment charges).

If there is a purchase involved, bridging loans are paid from the lender to the lender’s solicitor, then to the client’s solicitor, and then to the seller’s solicitor - so, you as a client will not see the funds in your own account - similar to a mortgage.

If there is no purchase involved (for example, for a bridging loan for home improvements before selling), the funds go from the lender to the lender's solicitor, to the client’s solicitor, and then to the client's bank account. 

In terms of how bridging loans are repaid by you, they are repaid as a lump sum, either at the end of your term or during it. You can choose to either 'service' the interest, so pay the interest back monthly, or roll it up into the value of the loan to also pay this off as a lump sum along with the capital.

Deposits and terms

Regulated bridging loans (for residential properties) are typically 12 months, however, some non-regulated bridging loans for buy to lets and commercial properties can be up to 36 months. 

Some lenders are more flexible on term durations than others, and it can be a case-by-case basis as to whether you'll get approval for a longer loan term.

Almost all regulated bridging loans are short-term, and have a duration of 12 months.

Bridging loans are short-term by nature. However, there can be some flexibility on term length, particularly for unregulated bridging. For example, bridging for development projects, flipping properties, buy to let bridging loans and commercial bridging loans can all have longer terms up to 36 months. 

Some bridging loan lenders allow you to extend your term if at the end of 12 months your property hasn't sold or your alternative funding hasn't come through yet - however, this is down to the lender's discretion and there are no guarantees. It's important to be aware of the risks of bridging loans, and your property can be seized and sold to compensate for failure to repay. 

You can effectively secure a loan for 100% of a property value, but only if you have other property as security to keep your overall loan-to-value below 80%.

So, if you're getting a loan for 100% of a property value, you'll need another property in the background to secure it against. 

The easiest way to see if you're eligible is either to give us a call or use our bridging loan calculator that automatically calculates your LTV.

You don't necessarily need a deposit for a bridging loan in the traditional sense of cash reserves, but you do need security for your loan in the form of another property or asset to keep the loan-to-value below 80% at a maximum.

For example, if you're buying a £300k property with a £300k bridging loan, you'd need another property to secure the loan against along with the property you're buying, or else your loan to value would be 100%. 

Miscellaneous

Understanding the difference between net and gross calculations is essential when comparing deals from bridging loan lenders.

The calculation determines the maximum LTV (Loan-to-Value), how much you can borrow, and how much you will eventually repay.

Here’s the difference:

When calculating the net loan amount for bridging loans, the borrower deducts the loan costs and additional fees (such as the arrangement fee) from the total loan amount - this is known as net loan calculation.

Contrary to that, gross loan calculation is based on the loan amount the borrower can receive without deducting any costs or fees.

In brief, the gross loan calculation represents the total amount available to the borrower, while the net loan represents what the borrower ultimately receives after deductions.

Which calculation do lenders use for bridging loans?

A common complication arises when it comes to comparing bridging lenders, as different lenders advertise their bridging loan products differently. The upshot of this, is that it can become difficult to determine if a higher LTV (loan-to-value) represents the actual amount you could receive.

Lenders typically use a gross loan calculation when advertising or promoting their bridging loan products.

This is because the gross loan amount represents the maximum loan amount the borrower is eligible to receive, and can be used as a marketing tool to attract potential borrowers.

Nevertheless, the net loan calculation is used when negotiating an agreement, which is the amount the borrower will receive after deducting fees and other costs.

Borrowers are responsible for repaying this amount, and lenders will use that amount to determine repayment schedules and other loan terms.

How a broker can help with bridging loan calculations

A broker can assist with bridging loan calculations by providing clarity, expertise, negotiation skills, and a comparison of loan options to help you make more informed decisions.

A first charge bridging loan refers to a bridging loan that is the only charge against the property, i.e., there is no existing mortgage on that property.

A second charge bridging loan is when there is already a mortgage on the property that the bridging loan is being secured against. 

In the event of repossession, the 'first charge' has the legal right to be repaid first, before the 'second charge', which is why second charge loans can be slightly more expensive as they're a greater risk to lenders.

It is still entirely possible to secure a second-charge bridging loan and they are common within the industry. 

Yes, your bridging loan lender will require a new valuation to be carried out for all properties in your bridging loan transaction. 

In some cases, we can work with lenders that can facilitate a 'desk valuation', which is a valuation carried out online based on the local property market, images of the property and the specifications of the home - this can save a considerable amount in fees and speed up your application, but it's not always possible, especially for higher value properties. 

Yes, you can get a bridging loan with bad credit. 

While lenders will look at your credit score and factor it into your application, there is no requirement for regular loan servicing with a bridging loan, and so your income is not analysed and your credit score is significantly less important than with a mortgage. 

Using funds from a bridging loan to purchase a property puts you in a strong position as a buyer - similar to that of a cash buyer. 

Being a cash buyer is attractive to sellers because there is no onward chain requirement, and the funds are ready to go for the purchase.

Using a bridging loan also eliminates the need for the chain to complete, and puts you in a position where funds can be available in a matter of weeks for completion; effectively rendering you a cash buyer to prospective sellers.

Let us do all the hard work of finding the right bridging lender for your circumstances. We secure bridging finance for applications of all types, and we negotiate competitive lending to meet your needs and timescales.

Fergus Allen
Head of Bridging CeMAP

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