Serviced apartment and aparthotel finance
We arrange commercial finance for operators, buyers, investors and developers in serviced apartments and aparthotels. This is business lending against a trading extended-stay asset, not a personal mortgage.
Funding aparthotel
Serviced apartments and aparthotels combine the space and self-catering of an apartment with the service and front desk of a hotel, aimed at the extended-stay guest. The operating model is efficient: lower staffing per room than a full-service hotel, longer average stays and steadier occupancy, which is why extended-stay is one of the strongest-growth segments in UK accommodation.
When we say aparthotel finance we mean the commercial mortgage, term loan, development finance, bridging line or refinance used to fund the serviced-apartment or aparthotel business. Lenders read it through the going-concern trade and the efficient operating model, the tenure, and the operator behind it, much as they would a hotel, with the credit case turning on EBITDARM rather than personal income.
Many aparthotels begin as a development or conversion, an existing building repurposed into serviced apartments, so the funding arc often runs from bridging to secure the asset, through development or refurbishment finance for the works, to a stabilised term loan once the apartments let. Equity and mezzanine fill the stack where senior debt stops short.
We present the extended-stay trade, the operating model and the numbers so lenders can price the risk, and we run the whole market as an arranger across bridging, development and term lenders.
What we fund
- Branded and independent aparthotels
- Serviced apartment blocks run as a single operating business
- Conversions of offices or residential to serviced apartments
- Ground-up aparthotel developments
- Extended-stay schemes in city and business locations
- Refinance of stabilised aparthotels onto better terms
Indicative terms
- Acquisition or term LTVUp to around 65 to 70% of value
- Going-concern basisSized on maintainable EBITDARM
- Bridging rateAround 0.75 to 1.30% per month
- Development or conversionAround 60 to 65% of cost
- Term15 to 25 years, from around 7 to 10% per annum
- Capital stackSenior debt with equity and mezzanine
- Key testsExtended-stay trade, operating model, tenure, operator
Indicative only. Terms vary by lender, operator and home and are not an offer of finance.
How we fund serviced apartments and aparthotels
We fund aparthotels on their going-concern trade and the efficiency of the extended-stay model. For an acquisition or term refinance we model the maintainable EBITDARM, read it through the longer average stays and steadier occupancy that extended-stay delivers, and arrange a commercial mortgage or term loan to around 65 to 70% of value over 15 to 25 years at an indicative 7 to 10% per annum. Where an aparthotel is being created from a building, the arc usually starts with bridging at an indicative 0.75 to 1.30% per month to secure the asset, then development or refurbishment finance to around 60 to 65% of cost at an indicative 9 to 12% per annum, with a pre-agreed term exit once the apartments let and stabilise. Equity and mezzanine complete the stack where senior debt stops short. Every figure is indicative and never an offer; the terms depend on the trade, the tenure and the operator.
Lender appetite for serviced apartments and aparthotels
Serviced apartments and aparthotels draw growing appetite, because the extended-stay model is efficient and resilient and the segment is expanding. Specialist hospitality lenders and challenger banks fund stabilised aparthotels on going-concern EBITDARM, bridging lenders provide the short-dated money to secure and ready a building, and development funders back conversions and ground-up extended-stay schemes through to a stabilised exit. Equity and mezzanine providers complete the stack on larger schemes. As an arranger and introducer with no exclusive tie, we match each leg of an aparthotel project to the lender most comfortable with extended-stay trade, and we line up the term exit from the outset so a development or conversion does not stall at refinance.
The serviced apartment and aparthotel market
Extended-stay is a strong-growth segment with an efficient operating model, which underpins both the trade and the exit. The wider UK accommodation market is liquid: investment reached £3.01bn year to date in 2025 per Savills, after a record £6.6bn in 2024 per Christie & Co, and Knight Frank and HotStats put London occupancy at 87.5% and regional at 82.8% in Q3 2025, with aparthotels typically holding steadier occupancy than full-service hotels because of the longer stays. London price per room sat at around £315,000 and regional at around £129,000 per Knight Frank. For a lender, a well-located, stabilised aparthotel with an efficient cost base and steady extended-stay demand is a resilient income asset with a clear refinance or sale exit, which is what gives comfort on a development or conversion arc.
Finance that suits this setting
- Hotel development financeFunds ground-up and conversion aparthotel schemes through to a stabilised exit.
- Hotel bridging financeSecures and readies a building for conversion to serviced apartments.
- Hotel acquisition financeThe core route for buying a trading aparthotel on its going-concern trade.
- Hotel refinanceRe-prices debt or releases equity once an aparthotel lets and stabilises.
- Sale and leaseback and mezzanineFrees property capital or tops up the stack on larger extended-stay schemes.
Fund a aparthotel home
A view on fundability within one working day.
What drives an aparthotel's numbers
Serviced apartments and aparthotels run an efficient extended-stay model, so their economics turn on lower staffing per room, longer average stays and steadier occupancy than a full-service hotel. Knight Frank and HotStats put London occupancy at 87.5% and regional at 82.8% in Q3 2025, and aparthotels typically hold steadier occupancy than full-service hotels because the longer stays smooth the booking pattern and the lean operating model protects the margin. The decisive factors for a lender are the going-concern EBITDARM the extended-stay trade generates, the tenure, and the operator behind it. Because extended-stay is a strong-growth segment with a resilient cost base, a well-located, stabilised aparthotel converts its steady occupancy into dependable earnings. We model the maintainable EBITDARM through the extended-stay pattern, because that is what supports the debt.
Indicative aparthotel leverage and rates
Indicatively we arrange aparthotel acquisition or term lending to around 65 to 70% of value, over 15 to 25 years, at around 7 to 10% per annum, sized on the going-concern EBITDARM. A stabilised aparthotel with an efficient cost base and steady extended-stay occupancy earns the keener end. Where an aparthotel is created from a building, we use bridging at an indicative 0.75 to 1.30% per month to secure it, then development or conversion finance to around 60 to 65% of cost at an indicative 9 to 12% per annum, with a pre-agreed term exit once the apartments let, and equity and mezzanine complete the stack on larger schemes. These are market-typical, indicative figures and never an offer; the terms depend on the trade, the tenure and the operator, and we run the bridging, development and term market across each leg.
Frequently asked questions
Can you get a mortgage for serviced accommodation?
Yes. A serviced apartment block or aparthotel run as a single operating business is funded with a commercial mortgage or term loan on its going-concern trade, to around 65 to 70% of value over 15 to 25 years at an indicative 7 to 10% per annum. We size it on the extended-stay EBITDARM, not personal income, and present every figure as indicative, not an offer.
What is an aparthotel?
An aparthotel combines the space and self-catering of an apartment with the service and front desk of a hotel, aimed at the extended-stay guest. The model is efficient, with lower staffing per room than a full-service hotel and longer average stays, which is why lenders view well-run aparthotels as resilient income assets within a strong-growth segment.
Can you finance an aparthotel development or conversion?
Yes. Where an aparthotel is being created from a building we typically use bridging at an indicative 0.75 to 1.30% per month to secure it, then development or conversion finance to around 60 to 65% of cost, with a pre-agreed term loan exit once the apartments let and stabilise. We line up both legs from the outset so the scheme does not stall at refinance.
How is an aparthotel financed differently from a buy-to-let?
An aparthotel is a trading business funded on its going-concern EBITDARM and operating model, not a residential let funded on rental yield against personal income. The service element, the front desk and the extended-stay trade make it a commercial hospitality asset, which is why we arrange it as business lending and run the hospitality market for it.
Why are lenders positive on the extended-stay segment?
Extended-stay combines an efficient operating model, lower staffing per room than full-service, with longer average stays and steadier occupancy, and the segment is growing. That resilience makes a well-located, stabilised aparthotel an attractive income asset, which supports both the trade and the eventual refinance or sale exit.
Funding a aparthotel home?
Tell us about the home and the operator and we will come back with a view on fundability and likely terms.