Finance Assets arranges asset finance for hotels and resorts, helping UK hospitality businesses fund kitchens, laundries, bedroom refits, spa and leisure equipment, energy upgrades and staff accommodation.
Asset finance for hotels and resorts spreads the cost of that equipment over 2 to 7 years, so cash stays free for wages, stock and the quieter months. It suits hotels refurbishing before the season, adding a spa or conference space, or cutting energy bills with new plant.
Written by Marcus Wright, founder of Bolton Business Finance Ltd, in financial services since 2008 and a commercial finance broker since 2019. Last reviewed October 2026.
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The short version
- Asset finance lets hotels and resorts spread the cost of equipment over 2 to 7 years.
- Kitchens, laundries, energy plant and leisure equipment are funded most readily. Furniture and fit-out can be funded, usually alongside harder assets.
- Several items from different suppliers can go on one agreement.
- Lenders look at occupancy, room rates, seasonality and how long you hold the property.
- Finance Assets arranges asset finance for hotels and resorts trading as limited companies and LLPs, and for sole traders and partnerships on agreements over £25,000.
| Item | Detail |
|---|---|
| Equipment covered | Kitchen and bar equipment, laundry, bedroom and public area refits, spa and leisure equipment, energy plant, IT and payment systems, vehicles and staff accommodation |
| Terms | Usually 2 to 7 years, matched to how long the equipment stays in use |
| Paid upfront | Hire purchase: often a 10% deposit plus VAT. Leases: usually 1 to 3 rentals in advance |
| New or used | Both, including refurbished kitchen and laundry equipment from established dealers |
| Extras | Installation, ducting and some fit-out costs can often be included alongside the equipment |
| Who we help | Limited companies and LLPs, plus sole traders and partnerships on business agreements over £25,000 |
Equipment we finance for hotels and resorts
Lenders will fund most of the equipment a hotel or resort relies on, from the kitchen and laundry behind the scenes to the rooms, spa and grounds guests see. Each group links to our detailed guide where we have one.
| Equipment group | Examples |
|---|---|
| Kitchen and bar | Combi ovens, ranges, extraction, dishwashers, bar equipment and coffee machines. See catering equipment finance |
| Refrigeration | Walk-in cold rooms, blast chillers and display fridges. See commercial refrigeration finance |
| Laundry | Washer extractors, tumble dryers, flatwork ironers and folders for an on-site laundry. See laundry equipment finance |
| Rooms and public areas | Beds, furniture, TVs, lighting and fit-out for bedroom and lobby refurbishments. See furniture and fit-out finance |
| Spa and leisure | Gym equipment, pool plant, saunas, steam rooms, hot tubs and treatment beds |
| Energy and plant | Boilers, heat pumps, solar PV, battery storage, building management systems and EV chargers for guests |
| Technology | Property management systems, Wi-Fi, door locks, tills and payment terminals, and conference AV. See IT, point of sale and audio-visual finance |
| Vehicles and grounds | Guest minibuses, buggies, ride-on mowers and grounds care machinery |
| Accommodation units | Lodges and glamping units for guests, and caravans or modular units for staff. See holiday lodge finance and staff accommodation finance |
How hotels and resorts use asset finance
Hotels usually turn to asset finance when equipment is needed before the revenue it will earn has arrived, or when a large item fails without warning.
- Refurbishing before the season. Funding a bedroom or restaurant refit in the quiet months, so the payments are covered by the busy ones.
- Replacing failed equipment. Spreading the cost of a new combi oven, boiler or dishwasher rather than paying for it from one month’s takings.
- Adding revenue. Equipping a spa, gym, conference suite or glamping field that brings in new income.
- Cutting running costs. Heat pumps, solar PV and an in-house laundry can reduce energy and linen bills, often by a similar amount to the finance payment.
- Housing staff. Rural and coastal hotels can fund on-site staff accommodation to help recruitment.
- Releasing cash. Refinancing equipment the hotel owns outright.
Furniture, fit-out and soft assets
Much of a hotel refurbishment is furniture, carpets, decoration and installation. Lenders call these soft assets because they have little resale value once installed.
- Usually fundable in part. Many lenders will include furniture and fit-out, but often limit how much of an agreement they can make up.
- Bundling helps. Combining a refit with harder assets, such as kitchen equipment, TVs or energy plant, makes it easier to fund.
- Shorter terms. Soft assets are usually funded over shorter terms than plant and equipment.
- Building work. Structural work, extensions and new bedrooms are part of the property. They are usually funded with a commercial mortgage or development finance, which we can also arrange.
Finance options for hotels and resorts
Hotels mostly buy long-life equipment on hire purchase and lease equipment that dates quickly. Our types of asset finance guide covers each option in more depth.
| Type | How it works | Suits |
|---|---|---|
| Hire purchase | A deposit, then fixed monthly payments. You own the equipment after the last one | Kitchens, laundries, energy plant and vehicles you will keep for years |
| Finance lease | Rentals with VAT added to each one. The lender owns the equipment | Spreading the VAT on a large refit or equipment order |
| Operating lease | Lower rentals priced around the expected resale value. You hand it back at the end | Gym equipment, IT and room technology replaced on a cycle |
| Contract hire | A fixed rental for an agreed term and mileage, often with maintenance included | Guest minibuses and service vehicles |
Hire purchase for hotels and resorts
Hire purchase for hotels and resorts is the usual way to buy kitchen equipment, laundry machines and energy plant. You pay a deposit, often around 10% plus the VAT, then fixed monthly payments, and the equipment is yours after the last one. You are treated as the owner for tax from the start, so you may be able to claim capital allowances.
Finance lease for hotels and resorts
A finance lease for hotels and resorts suits a large refit or equipment order, because VAT is added to each rental instead of being paid upfront. The lender keeps ownership. At the end you can usually keep using the equipment for a small secondary rental, or sell it and receive most of the proceeds.
Operating lease for hotels and resorts
An operating lease for hotels and resorts works well for equipment that dates, such as gym machines, room TVs and IT. Rentals are set around what the equipment should be worth at the end, and you hand it back or upgrade when the term finishes.
Contract hire for hotels and resorts
Contract hire for hotels and resorts is used mainly for guest minibuses and service vehicles. You pay a fixed monthly rental for an agreed term and mileage, with servicing often included, and the vehicle goes back at the end.
VAT and tax for hotels and resorts
Most hotels are VAT registered and can reclaim VAT on equipment. On hire purchase, VAT on the full price is usually paid at the start and reclaimed on the next return. On a lease, VAT is added to each rental. With hire purchase you may be able to claim capital allowances, and lease rentals are usually an allowable business expense. Energy-saving plant may also qualify for specific allowances. Check the tax treatment with your accountant.
Hotel finance costs: a worked example
A hotel replacing its kitchen line for £45,000, installing a £35,000 on-site laundry and a £40,000 heat pump, £120,000 in total, pays about £2,688 a month on a 4-year hire purchase, or about £2,242 a month over 5 years.
| Item | 4 years | 5 years |
|---|---|---|
| Equipment price (excl. VAT) | £120,000 | £120,000 |
| Deposit (10%) | £12,000 | £12,000 |
| VAT paid upfront | £24,000 | £24,000 |
| Monthly payment | £2,687.58 | £2,241.90 |
| Total interest | £21,004 | £26,514 |
The longer term lowers the monthly payment by about £446 but adds around £5,510 of interest. Put the payment against what the laundry saves on outsourced linen and what the heat pump saves on gas, and much of it can be covered from savings.
Illustration calculated in October 2026, assuming an interest rate of 9% a year. It is not a quote. Your rate depends on your trading history, credit profile and the equipment.
What lenders look for in hotels and resorts
Lenders look at the usual financial documents, plus the things that show how steady a hotel’s income is through the year.
- Your last 2 years of filed accounts, or management accounts and a forecast for newer businesses
- Your last 3 to 6 months of business bank statements, ideally covering both busy and quiet months
- Occupancy, average room rate and forward bookings
- Whether you own the property or lease it, and how long the lease has left
- For branded hotels, any franchise refurbishment requirement the equipment is for
- Supplier quotes, plus photo ID and address history for each director, member or partner
Related guides
Who we can help
We arrange asset finance for hotels and resorts that trade as UK limited companies and LLPs, and for sole traders and partnerships on agreements over £25,000 that are for business purposes. We are not authorised by the FCA, so we cannot arrange agreements of £25,000 or less for sole traders or partnerships of two or three partners, or finance for personal use.
Asset finance for hotels and resorts FAQs
Can a hotel finance a bedroom refurbishment?
Often, yes. Beds, furniture, TVs and lighting can be funded, though lenders may limit how much of an agreement is made up of furniture and fit-out. Combining a refit with harder assets, such as kitchen or energy equipment, makes it easier. Structural building work is usually funded with a commercial mortgage instead.
Can a seasonal hotel get asset finance?
Yes. Lenders are used to seasonal income and look at the whole year, not one month. Some can weight payments towards the busy season. Bank statements covering both busy and quiet months help show the payments are affordable.
Can a hotel that leases its building get finance?
Yes. Lenders look at how long the lease has left. Equipment that can be removed, such as kitchen and laundry machines, is usually straightforward. Items fixed into the building need the lease to run at least as long as the finance.
How much does hotel equipment finance cost?
It depends on the equipment, the term and your business. As an illustration, £120,000 of kitchen, laundry and heat pump equipment costs about £2,688 a month over 4 years on hire purchase at 9%, after a 10% deposit and the VAT paid upfront, or about £2,242 a month over 5 years.
Can a hotel finance a spa or gym?
Yes. Gym equipment, saunas, steam rooms, hot tubs, treatment beds and pool plant can be funded. Gym machines are often leased so they can be upgraded. Building the spa itself is usually funded with a commercial mortgage or development finance.
Can I refinance equipment the hotel already owns?
Yes. Through a sale and hire purchase back, a lender buys equipment you own outright and sells it back over a fixed term, so it stays with you. Hotels use it to fund a refurbishment or to strengthen cash flow before the season.
Get an asset finance quote for your hotel
Tell us what you want to finance
Send us the equipment, the prices and a few details about your hotel or resort. We will come back with the options that are realistic and what they are likely to cost.
About the author
Marcus Wright is the owner and founder of Bolton Business Finance Ltd, which trades as Finance Assets. He has worked in financial services since 2008, beginning his career at Santander, and has been a commercial finance broker since March 2019.
He founded Bolton Business Finance in 2020 to give businesses access to the whole lending market rather than one bank’s own product range. The firm is a member of the National Association of Commercial Finance Brokers and works with a panel of 135+ lenders. Call 0161 546 9128.
Finance Assets is a trading name of Bolton Business Finance Ltd, an independent commercial finance brokerage, not a lender. We are not authorised by the Financial Conduct Authority and can only complete non-regulated introductions. All lending is for business purposes only. Registered address: Westgate House, 1 Westgate Avenue, Bolton, Greater Manchester, BL1 4RF. Company number 12495909.