Hospitality Finance Specialists
Clear funding for hotels, hospitality assets, and owner-operated businesses
Running or developing a hospitality business is very different from financing an office block or a warehouse. Cashflow is seasonal, operations are people-led, and performance depends on far more than a spreadsheet.
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At Appella Commercial Finance, we specialise in helping owners, families, and operators secure funding that actually fits how hospitality businesses work in the real world.
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We arrange finance for independent hotels, boutique properties, serviced apartments, pubs with rooms, and small hospitality groups — whether you’re buying, developing, refinancing, or planning the next stage of growth.
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Through our partnership with International Golf & Resort Management (IGRM), we combine strong financial structuring with credible operational insight — giving lenders confidence and clients clarity.
What We Finance
We support hospitality clients across the full lifecycle of ownership.
Development Finance
Funding for new-build hotels, aparthotels, conversions, extensions, and refurb-led development.
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Typically up to 65–75% Loan-to-Cost
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Interest roll-up available during build periods
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Suitable for both first-time and experienced developers
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​Best suited to experienced hospitality developers. New entrants are considered selectively, where the project is well structured and supported by the right professional and operational team.
Acquisition Finance
Flexible structures for purchasing:
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Independent and family-run hotels
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Trading hospitality assets
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Distressed or off-market opportunities
Where required, we can support time-sensitive transactions and fast-track completions.
Refinance & Capital Release
Restructuring existing debt to improve cashflow or unlock value.
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Debt consolidation
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Capital release for refurbishment or upgrades
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Covenant restructuring and improved terms
Often used by owners preparing for growth, succession planning, or asset improvement.
Bridging Finance
Short-term solutions where speed and flexibility matter.
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Purchases, auctions, and planning bridges
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Transitional funding between strategies
Completion possible in 7–14 days, subject to security
Brand & Franchise Funding
Finance to support brand alignment and operational upgrades.
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Independent-to-brand conversions
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FF&E programmes
Systems, compliance, and brand-standard requirements
Specialist Hospitality Assets
We regularly arrange funding for:
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Boutique hotels and guest houses
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Pubs with rooms
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Serviced apartments and mixed-use hospitality
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Leisure-led and resort-style assets
The Appella + IGRM Difference
Hospitality funding works best when finance and operations speak the same language.
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By working alongside International Golf & Resort Management (IGRM), we ensure that funding applications are built on how hotels actually operate — not how spreadsheets assume they should.
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This means:
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Financial projections reflect real-world performance, not optimistic assumptions — with IGRM’s operational insight strengthening lender presentations and overall credit confidence
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Seasonality, staffing pressures, ramp-up periods, and operational realities are properly understood and explained
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Lenders see a credible operational story, not just numbers — reducing friction at credit committee level
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Risk is positioned accurately, neither hidden nor overstated, which leads to more constructive lender conversations
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Funding structures are aligned to how hotels trade, not generic property models
The result is often stronger lender appetite, better terms, and smoother approvals.
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Our clients are typically owner-operators, families, and private businesses who don’t have in-house finance teams — and value clear guidance, straight talking, and a process that feels considered rather than transactional.
Understanding Hotel Finance (What Lenders Really Look At)
Hospitality finance has its own rules. Some of the key considerations include:
Loan-to-Cost (LTC) & Loan-to-Value (LTV)
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LTC is usually 65–75% of total project costs
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LTV is typically 60–70% of completed value
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Lenders apply the lower of the two, making cost control critical from day one
Debt Service Coverage (DSCR)
FF&E, Refurbishment & Pre-Opening Costs
Most lenders require a DSCR of 1.25–1.50x.
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This means forecasts must account for:
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Seasonal trading patterns
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Conservative occupancy assumptions
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Sensible downside scenarios
Sustainable debt service, not peak performance
Hospitality projects often require 15–25% of total costs for FF&E alone.
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In addition, lenders will expect realistic allowances for:
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Working capital
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Recruitment and training
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Systems and operational setup
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Marketing and launch periods
Management & Operating Structures
Funding appetite varies depending on whether a property is:
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Independently operated
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Franchise-branded
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Under a management agreement
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Owner-operated
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Each model affects risk, covenants, and funding structure — and needs to be positioned correctly.
How We Work
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Initial Conversation
Understanding your asset, objectives, challenges, and timeframe.
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Operational & Financial Review
Reviewing performance, projections, and strategy — with optional operational input from IGRM.
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Lender Market Search
Identifying the most suitable lenders for your asset type, size, and operating model.
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Term Negotiation
Negotiating rates, security, covenants, drawdowns, and repayment structure.
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Completion & Support
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Managing the process through valuation, legals, and drawdown to completion.
Why Hotel Owners Choose Appella
Hospitality-Focused Financial Expertise
Hotel finance is not generic property finance. We understand the metrics that really matter — RevPAR, seasonality, staffing costs, operating margins, and the cashflow realities that drive hospitality performance. This allows us to structure funding that works in practice, not just on paper.
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Real Operational Insight (Not Guesswork)
Through our partnership with International Golf & Resort Management (IGRM), financial modelling is grounded in how hotels actually operate day to day. Occupancy assumptions, ramp-up periods, and revenue strategies are stress-tested against real operational experience — giving lenders confidence and owners clarity.
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Direct Access to Specialist Hospitality Lenders
We work with lenders who genuinely understand hospitality — including specialist hotel banks, boutique lenders, private credit funds, and relationship-driven financiers. This is particularly valuable for independent, boutique, and family-run hotels that don’t always fit high-street lending models.
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Clear, Responsive, Straightforward Execution
Owners value clarity and momentum. We provide fast initial feedback, explain requirements upfront, and manage the process efficiently from start to finish — so you always know where you stand and what comes next.
The Appella + IGRM Partnership — Finance Meets Real Hospitality Experience
What truly sets Appella apart is our partnership with International Golf & Resort Management (IGRM).
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This is not a marketing tie-up.
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It’s the joining of two deep specialisms that rarely sit at the same table.
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IGRM brings decades of hands-on experience in managing and operating hotels and resorts.
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Michael and his team have lived hospitality — from staffing pressures and seasonality to guest experience, refurbishment decisions, and long-term asset performance. There is very little in hotel operations they haven’t seen, solved, or improved.
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Appella brings deep expertise in structuring and securing hospitality finance.
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John and the Appella team understand how lenders think, how credit committees make decisions, and how to present hospitality assets in a way that builds confidence rather than concern.
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Together, this means:
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Operational realities are reflected in financial forecasts
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Lenders receive credible, grounded submissions — not theoretical models
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Risk is explained properly, not hidden or overstated
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Funding structures are aligned to how hotels actually trade
For owners, this often makes the difference between:
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“That won’t get approved”
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“This makes sense — let’s move forward.”
A Different Kind of First Conversation
We know that exploring finance can feel daunting — especially in hospitality, where decisions affect livelihoods, families, and long-term plans.
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That’s why our first conversation is simple.
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No pressure.
No obligation.
No commitment.
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Just time to:
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Talk through your situation
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Understand what you’re trying to achieve
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Explore what options may (or may not) make sense
If we can help, we’ll tell you how.
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If we can’t, we’ll be honest about that too.
Ready to Get Started?
If you’d like a quick, no-obligation conversation, we’ll listen first, ask the right questions, and tell you what options are realistically available.
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We can provide an initial assessment within 24 hours.
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Operational:
Telephone: +44 7880 937745
Email: michael.longshaw@igrm.co.uk
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Lending:
Telephone: +44 7984 397795
