Hotel Finance - Using Finance to Secure the Latest Guest Technology
- Date: 10 May, 2016
Working capital is the lifeblood of any business and without adequate cash-flow a hotel cannot operate. If used sensibly, finance can play a key part in ensuring a hotel can continue to invest without tying up precious cash reserves.
Consider the following example. A hotel with 150 rooms buying new TVs at a cost of £200 per unit. As a capital spend, £30,000 is a significant investment however paid monthly over 3 years, an outlay of just £960 per month or £6.40 per room would be required. And by increasing the rentals by just a few extra pounds each month, a hotel could look to add more value-add services such as Wi-Fi and film on demand.
John Paul Getty once said "if it appreciates, buy it. If it depreciates, lease it".
Choosing the right finance partner is important. Reality Finance has provided finance to the hospitality industry for the last 15 years, successfully helping hotels such as Intercontinental Park Lane, Grosvenor House London, Crowne Plaza, other chains and independents.
Our flexible asset finance packages are tailored to each business and enable our clients to fund vital assets without large cash outlays. We can help with funding for technology, refurbishments, catering equipment, EPOS, security equipment, vehicles and more. And if you’re a vendor, manufacturer or distributor supporting the hospitality sector, we can help drive sales by offering your customers fast and flexible asset finance offerings.