June 22, 2026 Hospitality & Accommodation

Understanding Commercial Mortgages for an Eco Lodge or Farm Stay

Buying the freehold of the eco lodge or farm stay you run is a defining step for any operator. At Ardent Capital Group we speak with owners about this kind of commercial property purchase often, so this guide covers how a lender reads the going concern, the deposit to plan for, and how the finance is commonly structured.

Ardent Capital Group is a specialist in commercial mortgages for eco lodge and farm stay operators across Australia. Our team can help you move from tenant to owner, and give you clear lending advice on structure and strategy.

Funding capacity: Access finance from $100,000 to $10,000,000+, matched to asset type and cash flow.
Track record: Over $500,000,000 facilitated across the last decade for more than 1,000 borrowers.
Sector focus: Commercial property, trading businesses and complex security mixes.
Coverage: Sydney, Melbourne, Brisbane, Perth, Adelaide, Canberra, Hobart and surrounding regional towns.

Why buy rather than lease your eco lodge or farm stay

Your improvements are site-specific and capital intensive. Cabins or tiny homes, eco tents on platforms, bathhouses, off-grid solar and batteries, bore and pump systems, wastewater treatment, commercial kitchens, laundry, access roads and trail works do not relocate cleanly. Owning the freehold lets you invest with a long view and lock in control of the guest experience.

Location drives bookings. Proximity to national parks, wine regions, coastal and hinterland drives, dark-sky zones and farmgate routes ties your customer base to your address. A stable base supports repeat visitation, partnerships with local operators and stronger direct booking share.

The sector has shown resilience through domestic tourism, agritourism and nature-based travel. Repayments convert rent into an owned asset, with potential tax and depreciation benefits on qualifying assets and building works.

Main drivers for ownership:

Control of capex: Justify larger investments in cabins, renewable energy and amenities when you control the land and buildings.
Stability of tenure: Remove lease renewal risk, rental ratchets and change-of-use exposure during peak seasons.
Asset growth: Direct repayments into an appreciating asset while the trading business maintains cash flow.
Operational flexibility: Stage upgrades, add sites or reconfigure layouts without landlord constraints, subject to approvals.

Buying may not suit every plan. A short lease tail with a move on the horizon, a site that cannot scale to target capacity, or capital that would deliver higher returns in marketing, guest experience or additional inventory can all tilt the decision toward continuing to rent. The call sits with you.

How financing an eco lodge or farm stay purchase works

Deposit and LVR: Freehold going concern loan-to-value ratios typically sit between 55 and 65 per cent, so plan for a deposit of 35 to 45 per cent. Where you offer additional security, such as equity in another property, 100 per cent of the purchase price can be funded, and our broker team can walk through how that is arranged. Strong trade and a solid operator record support the upper end of the band.
Loan term and structure: Terms commonly run to about 15 years, and some non-bank lenders extend further. Loans can be principal and interest for steady amortisation, or interest only, usually for up to about five years, to prioritise cash flow through seasonal cycles or an expansion phase.
Security and serviceability: The property is the primary security. Lenders assess business financials, cash flow, occupancy, average daily rate and seasonality patterns, along with any ancillary income such as farm tours or functions.
Owner-operator treatment: Lenders generally view an owner who lives on site and runs the business favourably. Occupying and operating on site can reduce perceived risk compared with a passive investment holding.

Structuring the finance

Many eco lodge and farm stay operators hold the freehold in a separate entity, such as a company or trust, and lease it to the trading business on commercial terms. A lender then reads that inter-entity rent as the serviceability line for the property, so it should sit at market rates. This is a common ownership arrangement, and it can support cleaner reporting and asset protection.

Some operators look at holding the freehold in a self managed super fund, where the premises qualify as business real property. The fund can own the property and lease it back to the trading entity at arm's length market rent, with lower typical LVRs and stricter rules on contributions and borrowing. Ardent structures and places the loan, and the tax, ownership and any superannuation detail is confirmed by your accountant and SMSF specialist before settlement.

How lenders size up the deal

Business financials: Trading history, margins, occupancy trends, ADR, RevPAR, seasonality and forward bookings.
Serviceability: Cash flow after operating costs, rent settings for related-party leases, interest cover and buffers across low season.
Property and valuation: Zoning and permitted use, improvements quality, cabin permanence, insurability, bushfire or flood overlays, access and car parking, environmental approvals and wastewater compliance.
Deposit and equity position: Cash, equity in other property, or capacity to leverage your equity across entities.
Experience and operations: Tenure in accommodation or hospitality, management capability, channel mix and direct booking share.
Lease and occupancy: If buying as investment or partial owner-occupation, lease terms, options, bond and market rent support.

A specialist broker in eco lodge and farm stay property understands mixed-use, rural and accommodation risk settings and knows which lenders back them.

A scenario worth considering

This is an illustrative scenario that shows the kind of situation we can assist with, and how the thinking might run.

Profile: Owner-operators running a 14-cabin eco lodge on 18 hectares under a lease, trading three years with steady domestic demand and forward bookings into the shoulder seasons.
Objective: Buy the freehold to secure tenure, then add four premium cabins and a solar-battery upgrade within 18 months.
Options we would map:
- Buy the freehold in a family trust and lease it to the trading company at market rent, set to support serviceability and smooth cash flow.
- Consider a self managed super fund purchase for a long-term retirement asset, accepting a lower LVR and higher cash contribution, with the lease held at market rent.
- Fund the freehold first, then stage the cabins and solar-battery works as trade builds.
Structures we would weigh:
- Principal and interest over 15 years for steady debt reduction.
- An initial interest-only period to align with the cabin rollout and seasonal peaks.
- Asset finance for new cabins if relocatable, or a construction facility where cabins are fixed and require approvals.
Equity position: Where the owners hold equity in an existing residential investment, they could draw on it to lift the funded amount and preserve working capital.
Indicative lending: A freehold going concern LVR in the range of 55 to 65 per cent, with final terms dependent on valuation, zoning and serviceability. Subsequent capex would be funded through a mix of asset finance and a top-up once the trading uplift is evidenced.
How we would approach it: We would map the ranges, structures and repayments so the owners could compare them against their risk appetite and timing. The figures above are illustrative, not confirmed outcomes.

Related finance for an eco lodge or farm stay

Asset finance for eco equipment and vehicles: Solar arrays, battery storage, bore pumps, wastewater systems, commercial laundry and kitchen, utility vehicles and tractors. Where a fit-out or plant package is involved, eco lodge equipment finance can fund it separately from the property.
Fit-out and refurbishment finance: Cabin upgrades, bathhouses, fire pits, boardwalks, signage, reception and dining refits aligned to brand and average daily rate goals.
Working capital loans: Shoulder-season liquidity, prepayment of annual insurance and rates, and marketing and distribution funding. Working capital for an eco lodge keeps your term facilities free for the property itself.
Business overdraft: Flexible buffer to manage booking cycles, refunds and supplier terms without tying up term facilities.
Refinancing and debt consolidation: Replace mismatched loans, simplify repayments and reduce total cost where possible.
Construction and renovation: New cabins or eco tents on fixed platforms, amenities blocks, off-grid infrastructure and communal spaces, subject to approvals.
Business or premises acquisition finance: Buy the freehold, the trading business, or both as a going concern with an integrated debt structure.

These facilities often interact. Owning the premises can free equity over time, while a refinance can consolidate working capital and asset facilities around your seasonal cash flow.

Specialist finance for eco lodge and farm stay premises

Ardent Capital Group arranges and structures commercial mortgages for eco lodge and farm stay owners. We build the lending around how you plan to hold and occupy the property, and how the business trades across the seasons.

We are a specialist commercial mortgage broker servicing Sydney, Melbourne, Brisbane, Gold Coast, Perth, Adelaide, Canberra and surrounding metro and regional areas. We have helped facilitate over $500,000,000 in funding over a decade for more than 1,000 borrowers.

If you are weighing a purchase, talk to us. This is the kind of purchase where the structure and the strategy matter as much as the rate, and our eco lodge property loan desk gives owners clear advice on both. We structure for optimal financial outcomes without pressure.

Frequently asked questions

What deposit do I need to buy an eco lodge or farm stay freehold?

Expect a 35 to 45 per cent deposit based on a 55 to 65 per cent freehold going concern LVR. The exact figure depends on property type, zoning, insurability, the strength of trading and your operator experience.

Can an SMSF buy the property and lease it back to my business?

Yes, where the property qualifies as business real property. The SMSF can lease it back at market rent. Typical SMSF LVRs are lower than standard commercial loans and the structure carries additional rules on contributions and liquidity.

Will lenders accept off-grid assets like solar, batteries and tank water?

Many do, provided the systems are compliant, insurable and sized for guest capacity. Bushfire, flood and access risks, plus wastewater permits, form part of the assessment.

How do lenders treat seasonality in serviceability?

Lenders look at multi-year trading, occupancy and ADR trends, forward bookings and cash buffers. Some structures use interest only periods aligned to build-outs or low seasons, then switch to principal and interest.

Can I finance cabins, tiny homes or safari tents separately?

If they are moveable, asset finance can be suitable. If they are fixed improvements forming part of the property, they are usually captured in the property valuation and funded within the commercial mortgage or a construction facility.

Does mixed farming activity on the land affect the loan?

It can. Primary production elements, mixed-use zoning or significant agricultural income shift the lender set, valuation approach and LVR. Clear title details and permitted use support a cleaner credit view.

Is there a difference between buying the freehold only and buying the going concern?

Yes. Buying freehold only with a lease to your trading entity is assessed primarily on property and rent. Buying the going concern combines business and property risk and changes how lenders view serviceability and structure.

Written by

Nick Chong

Managing Director, M.AppFin, Dip. Mortgage Mgmt

Nick holds a Bachelor of Agricultural Economics, a Master of Applied Finance and an Advanced Diploma in Financial Planning. He founded Ardent Capital in 2016 after more than a decade in financial planning and mortgage broking. For the past ten years he has led a team of finance specialists, mortgage advisers, brokers and credit analysts, all working to secure optimal outcomes for clients and always acting in their best interests. The team brings both a qualitative and a quantitative approach to every deal.