82.8%
East Midlands occupancy (Knight Frank / HotStats)
Derbyshire
Hotel Finance in Derby
Commercial mortgages, development, bridging, stabilisation, refinance and going-concern operator finance for hotels in Derby. This is finance for the hotel as a trading business.
Written and reviewed by Matt Lenzie Founder & Principal Broker · 25 years arranging hotel finance · Reviewed June 2026
£118
East Midlands ADR (Knight Frank / HotStats)
£98
East Midlands RevPAR (Knight Frank / HotStats)
£142,019/room
UK avg price per room (Cushman & Wakefield)
We arrange hotel finance in Derby for single-asset buyers, established operators, investors and developers. Whether you are acquiring a trading hotel, funding a ground-up or conversion scheme, or refinancing onto better terms, we read the trade and the numbers, then take the case to the lenders most likely to fund it across Derbyshire.
A Derby hotel is assessed as a going concern: its trade, its brand or independent positioning, its occupancy and the rate it achieves, and the stabilised profit it can sustain. UK regional hotels benchmarked at about £98 RevPAR on 82.8% occupancy (Knight Frank / HotStats, Q3 2025), the backdrop a lender reads when sizing a facility for a Derby hotel.
Hotel finance structures for Derby hotels
We arrange the full range of hotel finance for Derby operators and buyers. Acquisition finance funds the purchase of a trading hotel, indicatively to 65 to 70 percent of value over a 15 to 25 year term, with the loan sized on the hotel's stabilised trading profit. Development and conversion finance funds a ground-up build or a change of use, usually to around 60 to 65 percent of cost. Bridging moves at auction or completion pace. Stabilisation finance carries a hotel through the ramp to mature trade. Term loans refinance onto long-term debt, lower a rate or raise capital, and sale-and-leaseback or mezzanine release or top up capital against the freehold. We match each case to the lenders that back this kind of hotel across Derbyshire.
Hotels and accommodation we finance across Derby
Each kind of hotel is traded and underwritten differently, and we arrange finance for all of them in Derby and across Derbyshire. That covers budget and limited-service hotels, boutique and lifestyle hotels, luxury and full-service hotels, branded and franchise hotels under flags such as Premier Inn, Holiday Inn, Hilton and Marriott, independent hotels, guest houses and bed-and-breakfasts, serviced apartments and aparthotels, pubs with rooms and coaching inns, and resort and leisure hotels. A budget hotel turns on RevPAR and cost control. A luxury or resort hotel turns on rate, brand and the strength of the trade. Knowing which lender backs which type here, and at what leverage, is the work we do before a case ever reaches a credit committee. Local planning records show 2 recent hotel or leisure applications in the Derby area, a read on local development appetite.
Finance we arrange for Derby hotels
Property types we fund
The East Midlands hotel market and your Derby hotel
Nottingham, Leicester and Derby provide steady corporate and events-led hotel demand. A steady market where midscale and budget stock serves corporate and visiting demand. UK regional hotels benchmarked at about £98 RevPAR on 82.8% occupancy (Knight Frank / HotStats, Q3 2025), the backdrop a lender reads when sizing a facility for a Derby hotel. Lenders read these regional trading and investment trends, alongside the hotel's own accounts, when they size a facility for a Derby hotel.
- Nottingham and Leicester corporate and student-city demand
- Central location and logistics economy
- East Midlands Airport catchment
Live pipeline
Hotel and leisure planning in Derby
2 recent hotel or leisure schemes in the Derby City Council planning records, a real read on local development appetite and forthcoming room supply.
-
100 And 100A Douglas Street/230 Osmaston Road Derby DE23 8LJ
Change of use of apartment-hotel/serviced short term accommodation and HMO to 8 extra care/supported units for residents aged 16+(Use Class C3)
View on the planning portal → -
24 26 East Street Derby DE1 2AF
Change of use from retail (Use Class E) to a retro gaming arcade and indoor leisure venue (Sui Generis)
View on the planning portal →
Source: local-authority planning records via Construction Capital, filtered to hotel and leisure (use class C1) schemes. Live applications, not an indication of consent.
Local economy context, Derby
A hotel trades on the local visitor and business economy. As a broad proxy for local affluence and footfall, Derby recorded around 2,514 residential property sales over the past year at a median of £205,000 (active and liquid market). This is general local context only, not a hotel valuation, which turns on the hotel's EBITDARM trading profit and going-concern value.
Source: HM Land Registry residential price-paid data, last 12 months. Local economy context only.
FAQ
Hotel finance in Derby: common questions
How much can I borrow to buy a hotel in Derby?
Most lenders fund up to around 65 to 70 percent of value on a trading hotel, with the loan sized on the hotel's stabilised trading profit (EBITDARM) rather than the bricks alone. Leverage reflects the trading record, the brand or franchise position, occupancy and RevPAR. We hold more than one hundred lender relationships and shortlist the desks most likely to back a Derby hotel.
Which lenders provide hotel finance in Derby?
We work across high-street and challenger banks, specialist hotel and leisure lenders and debt funds. The right lender for a Derby hotel depends on the type of hotel, the operator's track record and the leverage you need, and we match the case to the desks that actively back it across Derbyshire.
What are hotel trading levels like around Derby?
Hotel KPIs are reported by London and by Regional UK rather than town by town. UK regional hotels benchmarked at about £98 RevPAR on 82.8% occupancy (Knight Frank / HotStats, Q3 2025), the backdrop a lender reads when sizing a facility for a Derby hotel. We read these benchmark figures alongside the individual hotel's own trading record when we structure a facility.
Do you only arrange finance in Derby?
No. We arrange hotel finance across the whole of Derbyshire and the wider UK, with the same approach: read the hotel and its trade, match the case to the lenders that back the type, and negotiate terms on the borrower's behalf.
Funding a hotel in Derby?
Send us the hotel and the operator and we will come back with a view on fundability and likely terms within one working day.