87.5%
London occupancy (Knight Frank / HotStats)
Greater London
Hotel Finance in Croydon
Commercial mortgages, development, bridging, stabilisation, refinance and going-concern operator finance for hotels in Croydon. 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
£266
London ADR (Knight Frank / HotStats)
£233
London RevPAR (Knight Frank / HotStats)
£142,019/room
UK avg price per room (Cushman & Wakefield)
If you are buying, building or refinancing a hotel in Croydon, the right facility is rarely the cheapest headline rate. It is the one that reflects the trading performance, the brand or franchise position and the occupancy, and that carries the hotel through to stabilised trading. We arrange hotel finance across Croydon and the wider Greater London market, from acquisition mortgages to bridging, stabilisation and term debt.
A Croydon 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. London hotels ran at about £233 RevPAR on 87.5% occupancy (Knight Frank / HotStats, Q3 2025), the benchmark a lender reads when sizing a facility here.
Hotel finance structures for Croydon hotels
We arrange the full range of hotel finance for Croydon 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 Greater London.
Hotels and accommodation we finance across Croydon
Each kind of hotel is traded and underwritten differently, and we arrange finance for all of them in Croydon and across Greater London. 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 1 recent hotel or leisure application in the Croydon area, a read on local development appetite.
Finance we arrange for Croydon hotels
Property types we fund
The London hotel market and your Croydon hotel
The deepest and highest-rated hotel market in the UK, with record ADR in 2025 and the keenest yields. The benchmark UK market: highest rates, strongest occupancy and the most liquid investment market, with a measured new-supply pipeline. Investment activity is strong: £697m (Savills, Q3 2025). London hotels ran at about £233 RevPAR on 87.5% occupancy (Knight Frank / HotStats, Q3 2025), the benchmark a lender reads when sizing a facility here. Lenders read these regional trading and investment trends, alongside the hotel's own accounts, when they size a facility for a Croydon hotel.
- Record London ADR and RevPAR set in July 2025 (STR/CoStar)
- Deep international leisure and corporate demand
- Keenest investment yields in the UK
Live pipeline
Hotel and leisure planning in Croydon
1 recent hotel or leisure scheme in the London Borough of Croydon planning records, a real read on local development appetite and forthcoming room supply.
-
Selsdon Park Hotel 126 Addington Road South Croydon CR2 8YA
Refurbishment and/or replacement of existing windows in the main hotel building and associated repairs
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, Croydon
A hotel trades on the local visitor and business economy. As a broad proxy for local affluence and footfall, Croydon recorded around 3,124 residential property sales over the past year at a median of £412,750 (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 Croydon: common questions
How much can I borrow to buy a hotel in Croydon?
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 Croydon hotel.
Which lenders provide hotel finance in Croydon?
We work across high-street and challenger banks, specialist hotel and leisure lenders and debt funds. The right lender for a Croydon 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 Greater London.
What are hotel trading levels like around Croydon?
Hotel KPIs are reported by London and by Regional UK rather than town by town. London hotels ran at about £233 RevPAR on 87.5% occupancy (Knight Frank / HotStats, Q3 2025), the benchmark a lender reads when sizing a facility here. We read these benchmark figures alongside the individual hotel's own trading record when we structure a facility.
Do you only arrange finance in Croydon?
No. We arrange hotel finance across the whole of Greater London 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 Croydon?
Send us the hotel and the operator and we will come back with a view on fundability and likely terms within one working day.