The COVID-19 pandemic has challenged many hotel and hospitality businesses. However, it’s a question of when, not if, demand will return. In the meantime, though, you may want to borrow capital to help tide your business over until things return to normal.
For the most part, hotels are usually seeking financial help to raise capital to keep your business afloat, circumvent cashflow challenges, defer loan repayments, access working capital and so on. What you can borrow will likely depend on your assets, your business's overall financial situation and any debt you already have.
If you are looking for help due to the pandemic's impact on your business, how you present your situation is central to successfully accessing capital or refinancing. Showing that you have already taken sensible, pre-emptive steps to optimise your finances is essential, as is having a solid game plan going forward. A strong case for lending with strong projections will also help you access finance. Being honest with lenders is also important. No one expects hotel occupancy to be back at pre-pandemic levels in 2021, so don’t feel the need to sell that story to lenders. Be transparent about your path to recovery and know that giving attainable numbers and a sensible timescale for recovery will help, not hinder you.