HOSPITALITY

Hospitality is a high-stakes sector where lenders often apply stringent terms unless the deal is packaged correctly. We arrange venue acquisition finance, fit-out and refurbishment facilities, and business expansion loans for restaurants, cafes, hotels, and breweries. Alasdair understands how to present hospitality cash flows in a way that unlocks competitive lending, even for complex multi-site operations.

Pubs, bars, restaurants, cafes, hotels and function venues are assessed on whether the deal is a freehold going concern, a leasehold business or a management right, each with a very different risk and LVR. Freehold hotels with gaming attract strong lender appetite and can support 60% to 70% leverage, while leasehold hospitality is capped far lower, often 40% to 55%, because the value evaporates if the lease or licence is lost. Licences are core collateral. In NSW, poker machine entitlements are transferable and valuable, and liquor licence conditions, trading hours and any freeze on new gaming approvals feed directly into worth.

Lenders analyse revenue by stream across bar, food, gaming, accommodation and functions, wage-to-revenue against the Hospitality Award, rent as a percentage of turnover for leaseholds, and the seasonality and event exposure of the location. Post-COVID, credit teams pay close attention to trading recovery, energy and insurance cost inflation, and any landlord arrears or ATO plan. Brewery tie arrangements and supplier rebates can support the deal but also constrain it. We package three years of trading, a stream-by-stream profit and loss, the lease and licence detail and a realistic operator plan, then tender across the pub-specialist banks, second-tier lenders and non-banks, comparing LVR, amortisation, interest-cover covenants, personal guarantee exposure and how each lender treats gaming income and a soft first year under new ownership.