Bridging Finance for Hotels, Pubs & Hospitality Property
Fast bridging for hotel, pub and hospitality property purchases. Access lenders who underwrite trading income, not just bricks and mortar.
What is hotel and hospitality bridging?
Hospitality bridging is short-term, property-secured finance for the acquisition or refinance of hotels, pubs, restaurants and serviced accommodation. It sits alongside care sector bridging as one of the most lender-restrictive niches because the security is fundamentally an operational business, not just a building. Lenders willing to engage assess vacant possession value, trading multiples and operator experience together.
Bridging is the right tool when speed is decisive - winning an auction, completing inside a distressed-sale deadline, or moving on an off-market opportunity ahead of competing operators. The facility typically runs 6-18 months and exits onto a specialist hospitality commercial mortgage or, where the deal is repositioned, the operator's sale.
When hospitality bridging is the right tool
Buying a hotel at auction with a 28-day deadline
Auction completion timelines are immovable. Bridging is the only product that funds at that pace on a trading asset.
Acquiring a closed or distressed hotel for repositioning
Lenders prefer to bridge on vacant possession value and then refinance onto a hospitality mortgage once trading restarts.
Buying a freehold pub from a pubco disposal
Pubco disposal programmes often run on tight, fixed completion calendars. Bridging matches that timing.
Refinancing a maturing facility while marketing the business
A short-term bridge avoids forced sale pricing when an existing mortgage approaches term and a sale process is underway.
Funding a major refurbishment between trading seasons
Drawdown of works funds against day-one value with a defined re-opening date and exit.
Acquiring a serviced accommodation portfolio
Mixed-use AirBnB-model portfolios sit outside standard BTL criteria. Specialist bridging lenders understand the model.
Hospitality bridging - typical lender criteria
| Loan size | £300k - £25m |
|---|---|
| LTV (operational, full trading) | 60-70% |
| LTV (vacant or closed) | 55-65% |
| Rates | 0.65% - 0.95% pm |
| Term | 6 - 18 months |
| Entity | Ltd Co or LLP preferred |
| Exit | Hospitality commercial mortgage or sale |
Lenders underwrite on a combination of vacant possession value and trading multiples (typically 3-5x EBITDA). Most require 12 months of accounts; vacant or closed assets qualify on VPV alone. Serviced accommodation is assessed differently by each lender - some accept projected income, others require 12 months trading.
Why hospitality operators use Doulton
Hospitality is the kind of niche where lender choice matters more than rate. The wrong lender will spend three weeks underwriting and decline; the right lender knows the asset class and offers in days. Doulton's panel includes the hospitality-active bridging lenders and the specialist commercial mortgage providers who exit them - so we model the full transaction from acquisition to refinance up front.
We also engage the right specialist hospitality RICS valuer at the outset. Generalist commercial valuers consistently undervalue hospitality assets because they apply industrial benchmarks; specialist valuers price the trading income properly. That difference frequently changes whether a deal works at the LTV the borrower needs.
Hospitality bridging - eligibility at a glance
- Hotel, pub, restaurant or serviced accommodation property security
- Trading accounts preferred (12+ months); vacant or closed assets accepted on VPV
- Hospitality-specialist RICS valuation required
- Operator or buyer experience reviewed and material to terms
- Exit via hospitality commercial mortgage, operator sale, or rebridging
- Seasonal income profiles accepted by specialist lenders
Case study - acquiring a Cotswolds hotel in 14 days
£1.3m bridging loan - 17-room operational hotel
The challenge
A buyer agreed terms on a 17-room Cotswolds hotel from a distressed seller, with a fixed 28-day completion deadline. The hotel had only 9 months of accounts under the previous operator following a 6-month closure, ruling out mainstream commercial mortgage finance which typically requires 24 months of trading evidence.
The approach
Doulton placed the case with a specialist hospitality bridging lender prepared to accept 9 months of accounts where strong occupancy data and forward bookings supported the trading story. A specialist hospitality RICS valuation came back at £2.0m, supporting the 65% LTV against the £1.3m loan. Legals ran in parallel with valuation to compress the timeline.
The outcome
Completion achieved in 14 working days, well inside the 28-day deadline. The buyer traded the hotel for 11 months under their own brand before refinancing onto a specialist hospitality commercial mortgage at month 11, when 24 months of combined trading evidence supported the long-term lender's criteria.
Bridging Finance for Hotels & Hospitality - frequently asked questions
Can I use bridging finance to buy a hotel?
Yes. Hotel acquisitions are one of the highest-volume hospitality bridging use cases, particularly where the deal is at auction, off-market, or from a distressed seller and the completion window is tight. Specialist lenders fund operational hotels with full trading accounts at 60-70% LTV, and vacant or closed hotels at 55-65% LTV on vacant possession value. Rates start from around 0.65% pm depending on trading status and asset quality.
Do bridging lenders assess hotel trading income or just property value?
Both. A specialist hospitality valuation produces two figures: the vacant possession value (the property as a building, with the operating business removed) and the going-concern value (the building plus the trading business, valued on an EBITDA multiple). Lenders apply LTV to the lower of those two figures, with the going-concern figure usually only accepted where there are 12+ months of accounts under the current operator.
Can I bridge on a closed or vacant pub?
Yes. Closed and vacant pubs are routinely bridged for refurbishment, repositioning or change of use. Lenders price the loan against vacant possession value rather than trading income, typically at 55-65% LTV. The borrower needs a credible re-opening or repositioning plan and a defined exit - either an operator sale, a refinance onto a hospitality mortgage once trading restarts, or planning-led conversion to alternative use.
What is the typical LTV on hospitality bridging finance?
60-70% LTV on operational hotels and pubs with full trading accounts; 55-65% on vacant or recently closed properties; 60-65% on serviced accommodation portfolios where lender appetite varies. Loans above £5m and assets with strong covenant or location attract the upper end of those ranges. Heritage and listed-building constraints can reduce LTV by 5-10% as lenders factor in restoration costs.
Can serviced accommodation (AirBnB-model) be used as bridging security?
Yes - but the lender shortlist is narrower than for traditional hotels. Specialist lenders comfortable with serviced accommodation underwrite on either projected income (with a discount factor) or 12 months of platform-evidenced trading. Single units sometimes qualify under BTL criteria; portfolios of units, particularly mixed leasehold/freehold, almost always need a specialist hospitality or commercial bridging lender.
How does bridging finance work for a pub purchase?
A pub bridging loan funds the property purchase against either the freehold (preferred by lenders) or a long leasehold (125+ years remaining). Tied pubs typically face stricter lender criteria than free-of-tie houses because the beer-tie restricts revenue flexibility. Bridging completes inside 3 weeks where vendor solicitors are responsive, and exits onto a specialist pub commercial mortgage after 6-12 months of trading evidence under the new operator.
Other specialist bridging sectors
Bridging Finance for the Care Sector
Fast, specialist bridging for care home operators acquiring, refinancing or refurbishing operational care facilities. Lenders who understand CQC registration, occupancy and trading.
Learn more →Leisure Property Bridging Finance
Bridging finance for leisure property - pubs, gyms, restaurants and nightclubs. Access lenders comfortable with operational complexity and trading-based valuations.
Learn more →Refurbishment Bridging Finance
Bridging finance for property refurbishment - light cosmetic works to heavy structural refurb. Up to 100% of works costs alongside the purchase advance.
Learn more →Development Exit Finance
Development exit bridging refinances maturing development finance onto cheaper short-term bridging during the sales period - reducing per-month interest while units sell.
Learn more →Tell us about your hotels & hospitality requirement
Indicative terms within hours. Whole-of-market benchmarking across 130+ specialist lenders. No upfront fees on loans over £1m.