Hotel Asset Finance can provide financial help to hoteliers who are working hard on a daily basis to offer their guests quality accommodation, facilities and supporting assets, for all areas of the hotel including bedrooms, bars and lounges and fitness centres. All of the assets in a hotel help to ensure that hoteliers make their guests’ experience as accommodating and memorable as possible. Could our tailored Hotel Asset Finance packages help your hotel to gain funding you need, whilst also improving your cashflow?
What is Hotel Asset Finance?
Hotel Asset Finance is simply a financial tool used by hoteliers to fund their hotels, which enables them to access the assets they need for their business in a financially viable way. It can be used to fund a huge variety of equipment essential to the running of a hotel. Hotels need to cater for a vast number of guests, many with differing needs. There are the obvious requirements that are expected by all guests, such as a bed in every guest-room down to the teaspoons used to stir their tea at breakfast. The cost of all the required assets can seem never ending for a hotelier, and the price of can be astronomical, making investment in their property a daunting prospect. Regardless, if it is a hotelier setting up for the first time or looking to renovate their existing hotel, this bill will quickly eat into budget or cashflow, so in order to obtain the required assets, hoteliers are able to use Hotel Asset Finance. Hotel Asset Finance enables hoteliers to spread the cost of the equipment over a number of years, generally over two to five, paying monthly until the asset has been paid off.
What can be financed using Hotel Asset Finance?
Anything in a hotel then it can be financed. As previously mentioned, the amount of equipment hotels need just for their basic operation is mind boggling. For each room as standard a guest will find, a bed, two side tables, lighting and lamps, a desk and chair, television and other electricals, a bathroom suite, wardrobes and a chest of drawers and air conditioning and heating controls. All of this can be financed. Of course, the bedrooms are only part of the overall guest experience. Your property may also have or want to offer leisure facilities: a gym, relaxing pool with a sauna and steam room. It is essential that every hotel has a kitchen, and a subsequent dining area to feed your guests at breakfast, lunch and dinner times if required. Then there is the back of house and back office, where hoteliers and their team will require laundry equipment and office equipment. Finally, there are the communal areas, in other words, the reception, bar and lounge areas to consider. These are the focal points of any accommodation venue and set the scene for guests so must be lavish but inviting. Everything that you can imagine in the hotel is able to be financed and the upfront cost can be spread over two years or more.
How does Hotel Asset Finance work?
At GSM Finance, we work with a panel of over 30 lenders, all of which have a different risk profile and some are more comfortable lending on certain assets then others. With this knowledge we are able to take certain assets for your hotel to certain lenders and other assets to others, to ensure you get the right tailored package. It will all start with a quote, invoice or purchase order from your supplier. Once this has been received, your dedicated GSM Finance broker will use the information and handle your application from there on. Your broker will set up a company profile on our secure database system. In order to do this, they will need your latest annual year-end accounts and the previous three months management accounts. If personal guarantees, commonly abbreviated “PGs”, are available from a director of the business, then your broker will also need them to complete a Statement of Assets and Liabilities. When PGs are available, this generally gives access to better rates from our lenders as this gives them an added level of security so that in the worst case the director will guarantee the return the financed asset.