Hotel VAT bridging loans: success stories
VAT funding for the tourism sector
Hote VAT bridging loans
Travel and tourism contribute nearly £240 billion to the British economy, with nearly 10,000 tourism accommodation enterprises existing across the UK.
Hotels represent one of the key property types within the tourism sector and we’ve delivered VAT bridging loans on several hotel acquisitions, enabling investors to navigate the complexities that these payments can create.
Explore some of our hotel VAT bridging loan success stories here.
Paddington hotel VAT bridging loan – £3m
BloomSmith recently partnered with the specialist hotel group Capilon Hotels to provide a VAT bridging loan for the purchase of a property on Westbourne Terrace in Paddington.
Delivering this £3,040,000 VAT loan as part of a £15.2 million acquisition highlights the value of VAT funding in supporting prudent short-term cash flow management.
Mark Breen, Managing Director of Capilon Hotels, commented on the acquisition: “Completing this £15 million purchase is a fantastic example of our growth within the nation’s capital and will ensure we continue to deliver the best possible service to its many visitors.”
Read the full case study here.
VAT bridging loan, Hotel Indigo in Birmingham
The Hotel Indigo in Birmingham is a stylish and contemporary boutique hotel, offering stunning views of the city skyline, located in the iconic Cube building in the heart of the city.
In 2022, the property was sold in a deal exceeding £10m.
Working alongside Zoom Capital, BloomSmith helped deliver a 90-day £2,100,000 VAT bridging loan on the transaction: this loan provided valuable cash flow during the completion process.
Read more about this story.
£5.3m hotel purchase in Reading
The Orchid hotel was sold for £5,300,000 in 2021, with the new buyer having to foot a hefty £1,060,000 VAT bill.
Our 90-day VAT bridging loan covered the VAT payable on the hotel, with HMRC repaying the loan directly to us once the return was completed.
Cornwall Hotel, St Austell VAT bridging loan
In 2021, BloomSmith helped enable the £2m purchase of a hotel in St Austell with a £400,000 VAT bridging loan.
Working with CBS Capital, the property acquisition is a prime example of how VAT bridging can help investors deliver upon their ambitious goals without risking their short-term financial stability.
About our VAT bridging loans
We are the UK’s leading unsecured VAT bridging loan specialist. Our VAT bridging loans are designed to help property developers, investors, and businesses manage the significant upfront VAT costs associated with commercial property purchases.
Get your hotel acquisition’s VAT funded within 48 hours of contract completion.
Indicative terms for our standard loans: 90-day term, 1.25% monthly interest rate, repaid by HMRC directly to BloomSmith.
If you would like to learn more about our VAT bridging loans, and how they might help your upcoming office purchase then you can speak to our team today, check your eligibility, or explore more below.
