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Buying or Setting up a Bed & Breakfast or Hotel

If you love looking after people, don’t mind entertaining strangers in your own home, and you're able to serve with a smile, then owning and running a B&B or small hotel could be perfect for you.

Premises will form the largest part of your investment, and getting this right is the key to your longer term success. Location, property type, room availability and your choice of finance will all affect your outcomes.

Many guests today expect ensuite facilities or access to a private bathroom. Whilst you are searching for properties, the potential to expand or include these facilities is important.

When considering finance, assume a budget of 5% of the property purchase price, to cover items such as stamp duty and associated fees.

Loans for bed and breakfasts, hotels etc come under a specialist lending area, especially when you are starting a new business or think that an existing business has scope to improve. The number of lenders available for 'start up' projects are typically less, especially since the recession.

In most cases you will need to consider a commercial mortgage, rather than a residential mortgage. In the early stages of running your business, cash-flow is important, therefore a loan with an initial interest only period can be of benefit (though some lenders will not offer this).

Should you have additional income, outside of your proposed business, then this may be taken into account by your lender. However, lenders will usually expect at least one of you to run the business on a day to day basis.

Always Independent has extensive experience of sourcing finance for clients who are wanting to set up or buy a bed and breakfast, guest house or hotel. We can guide you through the whole process from start to end, including an assessment of the profitability and potential of the business that you are looking to buy.

We specialise in properties within Areas of Outstanding Natural Beauty (AONBs) and National Parks in the UK.

Commercial Mortgages may not be regulated by the Financial Conduct Authority.

Your home may be repossessed if you do not keep up repayments on your mortgage.


Always Independent Financial Solutions Ltd is authorised and regulated by the Financial Conduct Authority No. 528062
Registered in England and Wales number 6441865 © Always Independent Financial Solutions Ltd
Our alternative dispute resolution provider is the Financial Ombudsman Service. Their website is financial-ombudsman.org.uk and you can find out more information via this link.
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