Running a successful hotel has never been easy. Hoteliers have long faced a competitive and volatile market, with the disruptive growth of Airbnb, the heightened influence of customer reviews, and a dependency on seasonal trade. Ultimately, hotel owners have little option but to consistently offer first-class service, or risk being left with empty rooms.
In 2020, the UK hotel industry was faced with an unprecedented challenge as the coronavirus pandemic brought strict limitations for leisure and business travel. Hospitality, including accommodation, was reportedly hit the hardest by Covid-19 restrictions and is forecasted for a slow recovery. However, pent-up demand during lockdown, plus the option of domestic 'staycations', could present new business opportunities sooner than expected.
Finance options for hotel businesses
As with most of the hospitality industry, hotel businesses can often struggle with seasonal fluctuations in demand. Negotiating the slower months is often the key to survival, with many relying on close to full occupancy during the peak season just to stay afloat. These annual peaks and troughs in revenue tend to create difficulties in managing cash flow for many small hotels and B&Bs.
Along with ongoing expenses such as commercial mortgages, utilities, catering, wages, and business rates, hotel owners also have to manage the cost of making property improvements. Whether refurbishing the rooms or adding a swimming pool, hotel operators must continually enhance their offering to ensure they’re satisfying guests and maximizing profits in the long term. Most business owners choose to renovate while fewer guests are staying on the premises. But with less money coming in during the off-peak season, cash flow problems can be a barrier to business development.
Fortunately, there are many sources of business funding available to cover the cost. While traditionally this might have meant approaching the bank for a loan, credit card or extended overdraft, businesses can now apply online to alternative lenders and have the money in their account in a matter of hours.
For example, with a lender like Fleximize, you can get access to funding for your business in as little as 24 hours, and you don’t necessarily have to meet the stringent credit requirements of a typical bank loan.
Fund your hotel with Fleximize
At Fleximize, we understand that hotel owners need to move quickly to ensure big projects are completed in time for peak season. Our quick online application process means that we can offer the speed, ease, and flexibility that hoteliers require. But that’s not all. Here are the other perks of Fleximize’s hotel funding:
- Hotels loans of up to £500,000 over a term of 3 - 48 months
- Competitive interest rates starting from 0.9% per month
- Quick and easy online application with minimum paperwork
- Interest charged on a reducing balance, not the total loan amount
- Top-ups and repayment holidays with all loans
- No hidden fees or early-repayment penalties
- Exclusive discounts on industry-leading business services from our B2B partners
We don’t apply the strict criteria of banks, meaning we’ll happily consider you for funding even if you have a less-than-perfect credit history. As long as you’ve been trading for a minimum of six months, you’re more than welcome to apply.
What can I use a hotel business loan for?
When you opt for one of our flexible business loans, you’ll have access to the capital you need to move your hotel business forward. Thousands of businesses based across the United Kingdom have turned to us for funding, including hotels and rental cottages. Fleximize’s hotel finance can be used for a range of purposes including, but not limited to:
Renovations & refurbishments: Our Flexiloan is particularly popular amongst businesses within the hospitality industry looking for funding to refresh their premises. This often includes purchasing soft furnishings, redecorating existing spaces or even building an extension.
Previous customers have included hotel, restaurant, and bar owners, who’ve found that a premises refresh not only allows them to serve more customers and attract new ones, but also presents an opportunity to update their prices.
Marketing & PR: Fleximize's hotel finance can also be used to pay for a new marketing & PR campaign to highlight changes to your hotel or offering.
The loan can be used to hire a member of staff to lead your marketing efforts, or to pay agency fees if you decide to look for specialists when communicating your offering to new customers.
Upgrading kitchen equipment: Our Flexiloan has funded plenty of new equipment purchases for SMEs across the UK, including kitchen equipment for restaurants and hotels looking to expand operations.
Often, the equipment purchased allows businesses to fulfil larger projects and work more efficiently - providing an initial cash injection to get the momentum going so they can reap significantly larger profits long-term.
How Fleximize's hotel finance has been used in practice
The video below features business owner Caroline who received a loan from Fleximize to cover the costs of an urgent boiler repair, as well as some additional improvements to her guest cottages. Despite being denied a traditional business loan, Lancombe Country Cottages & Lodges was promptly approved by Fleximize based on its trading history. With funding quickly secured, this hotel business could continue to deliver an excellent customer experience and revenue growth despite unforeseen expenses.
Fleximize funded essential renovation work at Lancombe Country Cottages & Lodges, a popular holiday complex in the heart of Dorset.
Apply for hotel finance today
If you’ve got big plans for your business, and you're ready to apply for funding, simply click the button below to get started. Alternatively, you can take a closer look at our funding options or check how your repayments might look using our business loan calculator. For any other enquiries, please don’t hesitate to give us a call on 020 7100 0110.