Hospitality and Leisure Finance
Operational real estate finance
We arrange hospitality and leisure finance within our £2m to £100m+ transaction range for hotels, venues, event spaces and other operational property. The assessment covers both the underlying real estate and the business trading from it.
Typical use cases
- Acquisition Purchasing an established hotel, venue or leisure business with freehold or long leasehold property.
- Refurbishment and repositioning Capital for rooms, event space, food and beverage areas or operational improvements.
- Refinance Replacing existing debt, aligning facilities with trading performance or releasing capital for investment.
- Development and conversion Funding a new asset or converting suitable property into a viable hospitality use.
How we structure the deal
- We separate property value, operating business value, working capital and capital expenditure in the funding requirement.
- Historic and forecast trading is normalised for occupancy, average rate, seasonality, events and management costs.
- The structure may combine senior term debt with capex, bridging or development funding according to the asset's stage.
- Covenants and repayment are aligned with realistic operating cash flow, allowing for ramp-up where the business is being repositioned.
What lenders look for
- Trading performance Reliable management accounts, occupancy, revenue mix, margins and evidence supporting forecasts.
- Operator capability Relevant management experience and a clear operating plan for the specific asset and market.
- Property quality Location, condition, licence position, alternative use and a valuation that distinguishes property and trade.
- Capital plan A costed and deliverable refurbishment or repositioning programme with suitable contingency.
Frequently asked questions
Can hotel acquisitions be financed on trading performance?
Yes. Lenders normally consider maintainable operating cash flow alongside the property value, management team and proposed debt service.
Can refurbishment costs be included?
Potentially. The facility may include a capex tranche released against an agreed budget and monitoring process.
Do lenders fund event venues?
Yes, where the venue has suitable property security, licensing, management and evidenced demand. Seasonality and booking visibility are important.
Can a new hotel development be financed?
Yes, subject to planning, costs, sponsor equity, operator strategy, demand evidence and a viable stabilisation or exit plan.
What financial information is required?
Typically historic accounts, current management information, revenue analysis, forecasts, capex plans and details of the operator and ownership structure.
Offices
Registered and North of England office: Ayrshire Lodge, Brass Castle Lane, Nunthorpe, Middlesbrough, TS8 9EB.
London office: 167-169 Great Portland Street, 5th Floor, London, W1W 5PF.
Telephone +44 7746 212528. Email som@unicorn-commercial.co.uk
Unicorn Capital Advisory is a trading name of Unicorn Capital Advisory LLP (LLP No. OC459692). Finance is arranged for business purposes only and is not regulated by the Financial Conduct Authority.
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