In positive news for those involved or looking into commercial mortgages within the hospitality sector, the total revenue of the top 500 British hotels increased by 5% in 2016, with £13bn spent at them.
Figures from Ortus Secured Finance, reported by BridgingAndCommercial.co.uk in October 2017 show that In the first six months of 2017, there were 19 million overseas visitors to the UK, up 9% from the same time in 2016.
Part of this increase is due to the weaker pound making it cheaper for overseas tourists to stay at British hotels. There are signs from the Bank of England that interest rates could rise and this could strengthen the pound. If this happens, hotels will be less likely to rely on foreign visitors alone to increase their business.
Proactive strategies to attract new and return visitors include refurbishments, building spa treatment centres, and upgrading restaurants. Hotels without the necessary finance to do this can remortgage their properties to raise capital.
Around 67% of visitors to Britain come from Europe, though there have been a 25% increase in tourists from North America. Many visit London and other major British cities, but a lot of overseas tourists find their way to more “off the beaten track” places too.
Thanks to the increased prosperity of hotels, the hotel sector may be seen as a good place to invest in. Commercial mortgages are available to purchase hotels or convert commercial property to hotel accommodation. Bridging loans can be used for refurbishment work.
There are a number of lenders who specialise in the hotel and hospitality industry. A commercial mortgage broker will be able to find a suitable commercial mortgage for existing and new hotel owners.