Urgent Short Term Loans to Settle a Motel or Hotel Purchase
Settle on the freehold accommodation property, then refinance once you are trading
Experts in strategic, short-term finance
Accommodation properties are specialised, and banks often need a going-concern valuation and several years of occupancy figures before they will lend. When settlement is due before those are ready, we can fund the purchase of the freehold in as little as 24 hours.
We lend on freehold motels, hotels and boutique hotels across Australia, valued on a going-concern basis. The money can pay for the purchase, furniture and fittings, and a refurbishment. The liquor licence, the furniture and the goodwill are never the security.
Why accommodation purchases take longer
- •A manager's residence and a mix of direct and booking-platform income make the valuation more detailed
- •Some motels are on strata or leasehold titles, which some banks avoid
- •A liquor licence transfer runs on its own timetable
- •Some banks limit their lending on regional or tourism property
Liquor licence transfers in NSW
Liquor & Gaming NSW says a licence transfer does not take effect until provisional approval is given, which usually happens within 10 business days of a complete application, with confirmation usually within 60 days. The business can keep trading while the transfer is assessed, and the owner of the premises can be the licensee for 28 days from becoming entitled to possession. Other states have their own processes.
When accommodation buyers call us
- •The contract settles before the bank's valuation is complete
- •The operator's lease has ended, and the freehold owner needs to run the motel
- •A refurbishment must be finished before the peak season
- •The adjoining property is for sale
- •The current loan is expiring and the bank will not renew
Funding a motel or hotel
Day one. Send the contract, the occupancy figures and the settlement date. Indicative terms follow within hours.
Inspection. Our valuers inspect the motel and review the occupancy and trading figures.
Licence timing. Your solicitor lines up settlement with the liquor licence transfer, if the property is licensed.
Settlement. We can settle inside 24 hours of the letter of offer being signed.
Figures to send for a motel
- •The contract of sale
- •Occupancy and trading figures for the last two or three years
- •The liquor licence details, if the property is licensed
- •Your experience running accommodation, or that of your manager
- •Your refinance plan
Loan options for motel buyers
- •First mortgage: over the freehold property, with a going-concern valuation
- •Second mortgage: over another property you own, where the motel alone does not support the loan
- •Bridging loans: so you can settle while the bank finishes its assessment
- •Secured business loans: for furniture, fittings and a refurbishment
- •ATO tax debt loans: where an ATO debt needs clearing
Terms for a motel or hotel purchase
| Loan feature | Detail |
|---|---|
| Loan size | $250,000 to $10,000,000 |
| Interest rate | From 9.7% p.a. (first mortgage), from 11.95% p.a. (second mortgage) |
| Term | 1 to 24 months, interest only |
| Maximum LVR | 70% of the lower of the assessed value and the purchase price |
| Security | A first mortgage over the freehold property, valued on a going-concern basis. Never the licence, the furniture or the goodwill |
| Settlement | From 24 hours |
Refinancing once you are trading
Buyers usually refinance to a bank once the motel has traded through a full peak and off-peak season under their ownership. Some sell another property instead.
A hospitality loan we funded
“Motels and hotels are valued on their trading figures as well as the land and buildings, and that takes a specialist valuer and several years of occupancy data. The bank often needs weeks for both. We lend on the freehold, valued on a going-concern basis, so the buyer can settle and start trading while the bank completes its assessment. Send us the occupancy figures, and we will give you our view the same day.”
Gino Tabila
Associate Director
Frequently Asked Questions
Get an indicative offer within hours, not weeks.
No credit check. No obligation.
Why Secured Lending?
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Get an indicative offer within hours, not weeks.
No credit check. No obligation.
Why Secured Lending?
Are you a broker? Find out why brokers love working with us.
Other Urgent Loans We Fund
Each page covers one deadline: what we fund, what to send us and how quickly we can settle.