The hotel industry is one of the largest in the world and regardless of whether the establishment offers services that cater to local residents or holiday makers; it will undoubtedly need to be properly equipped to ensure that all visitors are satisfied with their stay. The larger the premises, the longer it can take to equip each and every room – especially if the hotel is privately owned and relies on personal cash investments.
In most cases, a hotel can take anywhere between six months and three years until it will be ready to accommodate visitors (this information is based on recent findings from the Australian Travel Association). But one thing that they may have overlooked is the potential for hotel owners to seek external funding and this in itself can help to ensure that a premises is able to open its doors within a matter of months.
How does external funding work?
There’s one particular option that many hotel owners are considering and that’s hospitality equipment finance. Although the term hospitality encompasses catering as well as accommodation, this type of loan can be ideal for both paths and can be especially beneficial to hotels and hostels. Rather than spending months stocking rooms with the necessary items for a person’s accommodation – an owner could instead opt to source funds from a third party; ideally a registered lender.
These agencies are capable of providing anywhere between a few thousand and hundreds of thousands of dollars to borrowers. As long as the owner can prove that they are financially stable and that they’ll be able to pay back what they’ve borrowed, then there’s no reason why a lending agency wouldn’t be willing to offer them cash in return for monthly repayments.
This can allow the hotel to purchase all of the necessary facilities and equipment needed, and have them fitted in a matter of months, whilst minimising their costs.