ENCOMPASSING THE HOSPITALITY AND LICENSED SECTORS
Whether you are an existing operator looking at the refinance and expansion of your hotel group or a new entrant looking at the acquisition of your first hotel, Montane Finance will be on hand to support you through your journey.
Positive feedback from lenders suggests that competitive finance will continue to be available for owners and operators, seeking to acquire or refinance existing loan facilities.
The emergence of new challenger lenders, able to provide a more aggressive appetite to risk has been welcomed especially on facilities such as short term bridging, mezzanine finance and interest only terms.
That said, the High Street remains prominent in the hotel sector with operational experience and location, location, location the key!
Moving forward, hotel technology is poised to play a far bigger part in all aspects of hospitality. As hoteliers learn to embrace technology, the benefits will be substantial, from marketing campaigns, guest experience, bookings to operations.
In terms of the customer experience, the rise of augmented reality and virtual reality will prove to be a real game changer to the hotel industry in the UK.
Key factors to the success of your hotel application may include the following:
Are you an existing operator, do you have the skill set to manage/operate the target business? Is there a credible management team in place? This will be vital for new entrants
You can expect to see a LTV (Loan to business value) ratio of between 55 – 75%
Can the target business support the proposed commercial mortgage?
A ratio of 4- 6.5 x multiple of (ANP) Adjusted Net Profit will typically be used by lenders