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For a property-secured hotel term loan, lenders typically consider trading performance supported by recent accounts and bank statements, plus clear ownership or control of the hotel premises. They also look at the credible use of proceeds, such as refurbishment, interior upgrades, boiler and HVAC replacement, or furniture and fittings. Most deals are structured over roughly 24 to 84 months, and decisions are often around 2 to 8 weeks for straightforward secured cases. Pricing commonly falls in a range of about 6% to 14% APR depending on risk, security and term, with some lender specific options such as interest-only periods.

An unsecured hotel term loan is often considered when the hotel has consistent trading and you can pass affordability checks without property security. Lenders generally review accounts or management accounts and recent business bank statements, taking account of seasonality in whether repayments can be met across quieter and busier periods. Terms are commonly 12 to 60 months, with decisions often around 1 to 4 weeks for standard unsecured cashflow assessments. Because there is no property security, pricing is frequently higher, with typical UK ranges around 7% to 18% APR, influenced by your credit profile, leverage and the loan term. Use cases include working capital top ups, compliance upgrades, equipment maintenance, and bridging gaps between spend and revenue ramp-up.

With an asset-backed equipment term loan, the funding is linked to qualifying hotel assets such as beds and linens, commercial kitchen equipment, laundry systems, or refurbishment linked fixture and furniture purchases. Eligibility depends on your ability to maintain payments and, in many cases, the lender’s ability to verify the asset through invoices, receipts or a purchase plan. These loans are often arranged over 24 to 60 months to match equipment lifecycles, and decisions are frequently around 2 to 6 weeks where documentation is straightforward. Pricing can sit between secured and unsecured depending on asset security and paperwork, with typical UK ranges roughly 6.5% to 15% APR. Common uses include replacing high-failure equipment, fitting out a refurb wing, or funding supplier-led upgrade packages with clear evidence.