Bridging Loans for Hospitality Businesses
By Joshua Giles, Founder and Director · Reviewed by the CoreFi credit team
Last updated 20 July 2026
CoreFi is a broker, not a lender. We do not set rates and lenders make all credit decisions.
In short: £100k - £3M over 3 - 18 months. A good hospitality site moves fast.
A good hospitality site moves fast. The freehold pub or hotel that fits your plan will not wait six months for a commercial mortgage to complete, and the vendor knows it. A bridging loan closes that gap: typically secured on the property at up to 70-75% LTV on day one, with interest rolled up so there are no monthly payments eating into your cash while the building is shut for a refit.
The lender who says yes to a pub conversion or a boutique hotel acquisition is almost never the high street. These are specialist short-term lenders who understand that a hospitality asset mid strip-out has a suppressed bricks-and-mortar value, and that trading income only follows once the licence transfers and the fit-out is done. They lend on the end value and a credible exit, not on today's revenue.
The exit here is almost always a refinance onto a commercial mortgage once the site is trading. Most term lenders want to see 6 to 12 months of accounts before they will underwrite the long-term debt, which is exactly what the bridging term buys you. We structure the deal against that timeline from the start, because a bridge with no clear exit is a problem at the back end, not the front.
Key Benefits
- Freehold pubs, hotels, and restaurants are all accepted as security, including sites that are currently closed or mid strip-out
- Interest is typically rolled up for the full term, so you are not servicing the loan through a refurbishment when there is no trading income
- Lenders here value the property on its end use and trading potential, not just bricks and mortar, which is what makes conversions work
- Refurbishment costs can often be drawn in tranches against a schedule of works rather than borrowed in full on day one
Frequently Asked Questions
Can I get a bridging loan for a pub or hotel purchase?
Yes, and we place these regularly. Pubs, hotels, restaurants, and leisure properties are accepted as security by short-term lenders who understand hospitality assets. The valuation will weigh trading potential alongside bricks-and-mortar value, which matters on any site that is not currently trading at full capacity.
What if the business has no trading history?
Bridging lenders are not underwriting your P&L. They are underwriting the property value and your exit. If you are acquiring a closed site or converting a building, the lender wants to know how you get out, typically into a commercial mortgage once you have 6 to 12 months of trading accounts. No broker can promise a rate or an approval, but a lack of trading history on its own is not the blocker it would be on a term loan.
Is an alcohol licence needed before completion?
Not for the bridging loan itself. Your exit strategy does have to account for licence transfer or fresh application timelines, because a commercial mortgage lender will want to see the business trading, and you cannot trade a pub or hotel without the licence in place. Build that lead time into the plan from the start.
Can I include refurbishment costs in the loan?
Often yes. Many lenders will fund refurbishment costs within the bridging facility, released in stages against a schedule of works with inspected drawdowns. This is standard on pub and hotel conversions, and it means you only pay interest on what you have actually drawn rather than the full facility from day one.
Bridging Loans calculator
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Monthly interest
£2,125
Total interest
£25,500
LTV
56%
Rolled-up cost
£25,500
Illustrative estimate only, not a quote or financial advice. A broker will confirm exact terms based on your circumstances and lender appetite.
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Related Funding Options
Bridging Loans UK
Bridging loans from £50k to £25M, secured against UK property or land. Simple first-charge cases can complete in 5 to 7 working days. We place bridging deals across a whole-of-market lender panel & tell you which one fits your case.
Commercial Mortgages for Hospitality Businesses: Pubs, Hotels & Restaurants
Commercial mortgages for pubs, hotels and restaurants in the UK. Long-term finance secured against trading hospitality property, valued on fair maintainable trade. We broke it to specialist lenders.
Unsecured Business Loans for Hospitality Businesses
Unsecured business loans for UK pubs, restaurants & hotels. We place deals on trading accounts & card revenue, no property security needed.
Bridging finance by location
Lender appetite varies by city and region. If you would rather start from where your business is based, these local guides cover the same funding with the local picture.
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Get matched with lendersCoreFi is a trading name of JG Core Ltd (Company #16218779, England & Wales). CoreFi acts as a commercial finance broker and does not provide regulated financial advice. All products described are unregulated business-to-business finance. Information on this page is for general guidance only and does not constitute a formal offer of finance. Terms, rates, and availability are subject to lender criteria and may change without notice.