How Do Hotels Fund Refurbishment and Quiet Seasons?

The funding challenge for hotels

Hotels carry heavy fixed costs and refurbish rooms on a rolling basis, against occupancy that swings with season and events. The money goes out well before it comes back in, and for hotels that timing mismatch — around room refurbishment programmes and seasonal occupancy swings — is the recurring pressure point. Understanding the shape of it is the first step to funding it without overpaying.

The facility that tends to fit

For this trade the natural route is business lofor refurbishment, plus revolving facility for seasonality, because it matches the need rather than forcing a general-purpose loan onto a specific problem. Where a firm needs both an asset funded and a cash gap bridged, running two matched facilities is usually cheaper than stretching one to do both jobs. Read the underlying guide before committing.

Put real numbers behind it

Size the facility against your own figures with our seasonal cash-flow planner and the seasonal cash flow guide on Learn. Borrowing a figure pulled from a forecast beats borrowing a round number, and it keeps the repayments matched to when cash actually arrives.

How lenders view the trade

Our sector page for hotels sets out what a lender looks at, and the general answers on whether your sector affects getting a loan and how affordability is assessed give the wider picture. Credicorp lends to limited companies and LLPs, not individuals, with no personal guarantee. When ready, you can apply. General information, not an offer of finance.