We have always had a strong appetite for lending into the hospitality and leisure sector.

Since the end of the pandemic, we have seen a big increase in demand for both stabilisation loans to help refinance an existing business, as well as equity release to support business investment, refurbishment, and expansion.

This increase has been particularly marked in the south-west of England.

The particular challenges of the south-west

There is room in the south-west market for both high-end and more functional propositions, and operators across the hospitality business spectrum are always looking to invest.

Demand for luxury hospitality offerings is usually located in key areas such as Salcombe, Poole, St Ives, Padstow, the South Hams, and particularly scenic coastal hot spots in Cornwall, Devon, and Dorset.

Operators are typically able to achieve strong occupancy in the high season, but the battle for profitability lays in attracting off-season visitors. Often, a strong food and beverage offering can help in this regard.

We also have a long track record of assisting holiday let owners and operators in the region.

We see lending as being more about the future than the past

In the south-west, just as elsewhere, banks often want to see a track record of performance, especially for larger, mixed-used sites.

We prefer to take a more pragmatic and flexible attitude to lending, enabling us to showcase our projection-led approach and analyse holiday let facilities based on forecasts.

Our underwriters will consider all types of loan proposition, including refinancing to improve business cashflow, an injection of cash to cover short-term costs, or equity release to fund development, refurbishment, and expansion.

A face-to-face approach helps to develop strong business relationships

One of our five key business principles is being local to our clients.

Our Relationship Directors will look to meet borrowers at the security property as often as possible. We have long found that a willingness to put in the miles and make time to see people wins business and relationships.

Through this, we have developed a strong network of introducers and professionals in the south-west, which helps us to originate and execute transactions.

Get in touch 

If you’d like to talk to us about our commercial lending proposition and how we can help you and your clients, speak to the Relationship Director in your local office.