April 5, 2026 Hospitality & Accommodation

A Commercial Mortgage Guide for Resort Owners

Buying the resort you operate is a defining step, and owning the premises gives you control over tenure, refurbishment cycles and long-term capital value. At Ardent Capital Group we speak with accommodation operators about this kind of commercial property purchase often, and this guide walks through how a lender reads a resort and what shapes the finance.

Ardent Capital Group is a specialist in commercial mortgages for resort operators across Australia. Our team can help you move from tenant to owner, and give you clear lending advice on structure and strategy. A resort property loan is the kind of purchase our hospitality specialists work on.

Access finance from $100,000 to $10,000,000+, aligned to trading strength and the asset quality.
Over $500,000,000 in funding facilitated across a decade for more than 1,000 borrowers.
We service Sydney, Melbourne, Brisbane, Perth, Adelaide, Canberra, Hobart and surrounding regional towns.
Deep experience across freehold going concern, leasehold interests and management rights.

What ownership gives a resort operator

A resort carries heavy capital tied to the site and buildings. Guest rooms, FF&E, commercial kitchens, pools and plant, lifts, fire systems, accessibility works and energy systems all anchor to the title. The address drives demand, whether coastal, alpine or wine country, and many resorts build a loyal base linked to that locale. Rent escalations and renewal risk sit outside your control when you lease. Mortgage repayments build an owned asset that can be improved, refinanced or sold on your terms.

Main drivers:

Control of tenure and brand standards: lock in long leases to your own trading entity, and run refurbishment cycles without landlord approvals.
Capital efficiency: repayments convert into equity over time, with debt structured to match seasonal cash flow.
Customer stickiness to location: beaches, ski fields and regional gateways create repeat visitation tied to your site.
Multi-stream operations: rooms, food and beverage, events, spa and activity income benefit from property-specific upgrades that you own upon settlement.
Exit flexibility: sell as a freehold going concern, split the freehold and the business, or step back to a passive investment with a strong lease covenant.

Buying may not suit where the lease term is short with a hard relocation ahead, where a rebrand or site change is planned, or where capital delivers a higher return in operations, marketing or a time-critical refurbishment. The decision sits with you.

How a resort purchase is funded

Deposit and LVR. A resort is specialised accommodation, so a freehold going concern typically funds to about 55 to 65 per cent of value, which means a deposit of roughly 35 to 45 per cent. Resorts sit toward the lower end of that band, since a remote or single-destination location narrows the buyer pool. Where a borrower adds another property as security, a higher gearing, up to 100 per cent of the purchase in some cases, can be arranged, and our broker team can explain how.

Loan term and structure. Terms for accommodation property commonly run to about 15 years, shorter than the 25 to 30 a standard commercial or residential borrower expects. Structures can be principal and interest for steady amortisation, or interest only for a set period, usually up to about five years, where cash flow supports refurbishment or shoulder-season needs.

Security and serviceability. The property is the primary security. Lenders assess business financials, serviceability under stress rates, and may sensitise seasonality. They consider occupancy, ADR, RevPAR, forward bookings, franchise or brand agreements, and capex plans.

Owner-operator treatment. Lenders generally favour owner-operator purchases where the buyer runs the venue, because trading control and alignment give them comfort. Strong trading performance, management depth and location quality are what a lender weighs when setting terms.

Common holding structures

Many resort operators hold the real estate in a separate entity, such as a company or trust, and lease the premises to the trading business at a commercial market rent. A lender then reads the inter-entity rent as the serviceability line, and the split keeps the property security apart from operating risk, which can make partner distributions clearer and simplify a later move from trading to a passive lease.

Resort purchases commonly sit across freehold going concern ownership, a leasehold interest with a strong head lease, or management rights with caretaker and letting agreements in a strata-titled complex. Each carries distinct lending settings on LVR, the term aligned to the agreement life, and the assignment conditions a lender will check. With a background in financial planning, Nick and the Ardent Capital Group team can map the finance around your structure, then work with your accountant to confirm the final detail.

Some operators hold the freehold inside an SMSF. Where the premises qualify as business real property, an SMSF can hold the building under a limited recourse borrowing arrangement and lease it to the trading entity at market rent, which sits apart from the operating business. The appeal is asset protection and a concessional tax setting, weighed against contribution caps, liquidity and borrowing limits. Ardent arranges the finance around your set-up; your accountant and SMSF specialist confirm the tax, super and ownership detail before anything is locked in.

What a lender looks at

Business financials and performance: three years where available, EBITDA quality, occupancy, ADR, RevPAR, seasonality and management capability.
Serviceability: cash flow under stress rates, interest cover, DSCR, and an allowance for low-season buffers and capex.
The property and valuation: location strength, title, improvements, zoning, flood or bushfire overlays, building condition and FF&E.
Deposit and equity position: cash, grants, and the ability to leverage your equity in other property if appropriate.
Lease and occupancy profile: where buying the freehold and leasing to your own entity or a third party, lenders assess rent cover, WALE and covenants.
Agreements and brand: franchise or marketing agreements, the liquor licence, body corporate consents for management rights, and assignment terms.

A specialist broker who understands resort assets, agreement terms and seasonal trading can shorten the path to bankable terms.

An illustrative scenario

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

Profile: a coastal resort with 42 keys, a restaurant and a day spa. An owner-operator with five years of financials, EBITDA around $1,200,000, and strong forward bookings across school holidays and summer.
Acquisition: a freehold going concern at $8,200,000, with $1,700,000 in available cash, $600,000 of usable residential equity, and a planned refurbishment of $500,000 over 18 months.
Options we would map:
- A stand-alone facility around 60 to 65 per cent LVR, principal and interest over about 15 years, with interest only for 24 months to stage the refurbishment.
- A higher gearing by adding a second property as security to leverage your equity, keeping working capital in the business.
- Vendor terms as a mezzanine layer above a senior lender at 55 to 65 per cent LVR, with repayments aligned to seasonality.
- A holding structure with a unit trust and corporate trustee owning the freehold, and the trading company leasing at market rent, giving clear partner distributions.
- An SMSF holding the land and buildings only, the operating company staying outside, on a market-rate lease, with liquidity weighed carefully.

How we would approach it: we would map the ranges, structures and repayments by season, then talk through control, refurbishment timing and cash flow. Senior lender appetite for a resort of this profile typically sits in the 55 to 65 per cent LVR range, subject to valuation and serviceability. The figures above are illustrative, not confirmed outcomes, and the decision would always sit with you.

Ways we can fund a resort business

Asset finance: commercial laundry, pool plant, kitchen line, POS systems, golf buggies or boats for guest activities, and HVAC upgrades, arranged as resort equipment finance.
Fit-out and refurbishment finance: guest-room refresh, FF&E cycles, bathrooms, accessibility works and energy efficiency upgrades including solar and EV chargers.
Working capital loans: working capital for a resort to cover low-season payroll, prepay OTA campaigns, and secure group bookings and deposits.
Business overdraft: manage chargebacks, inventory spikes and weather-impacted cancellations.
Refinancing and debt consolidation: simplify multiple equipment leases and smooth cash flow with one facility and aligned terms.
Construction and renovation: new villas or cabins, spa expansion, conferencing upgrades and staged drawdowns tied to DA and progress claims.
Business or premises acquisition finance: buy the freehold, acquire the going concern, buy into a partnership or purchase neighbouring parcels for expansion.

Owning the premises can free equity for future upgrades, and a refinance can consolidate facilities to match seasonality and growth.

How Ardent helps resort buyers

ACG is a specialist in resort commercial mortgages. We arrange and structure finance around how you intend to hold and occupy the property, then align the loan to trading patterns and capex plans. We service Sydney, Melbourne, Brisbane, Gold Coast, Perth, Adelaide, Canberra and regional areas.

Ardent Capital Group is a specialist in commercial mortgages and our team can help you today. Over a decade we have helped facilitate more than $500,000,000 in funding for over 1,000 borrowers. Talk to us about a path that targets optimal financial outcomes without pressure.

Questions worth asking

How much deposit do I need to buy a resort freehold going concern?

Typical deposits sit around 35 to 45 per cent, aligning to a freehold going concern LVR of about 55 to 65 per cent. Resorts sit toward the lower end of that band where the location narrows the buyer pool, and strong trading history and operator experience support the higher end.

Will lenders fund management rights or leasehold interests for resorts?

Yes, specialist lenders assess the caretaking and letting agreements, the remaining term and options, body corporate consents, assignment clauses and verified net profit. LVRs are usually lower and terms often match the agreement life.

Can my SMSF buy the resort property and lease it to my operating company?

If the asset qualifies as business real property, an SMSF can acquire the real estate under a limited recourse borrowing arrangement and lease it to your company at market rent. The operating business stays outside the SMSF, and you need to manage liquidity, contribution caps and borrowing limits. Your accountant and SMSF specialist confirm the detail.

How do lenders view seasonality and forward bookings?

They sensitise earnings for low-season months, look for cash buffers, and value contracted group bookings and wholesaler agreements. Clear reporting on occupancy, ADR, RevPAR and cancellations helps serviceability.

What valuation approach is used for a resort?

Valuers assess a resort on its trade, capitalising net income or applying an EBITDA multiple, with RevPAR, occupancy and average daily rate the metrics behind the figure. The quality of improvements, and for a passive freehold let to an operator the lease and cap rate on market rent, also count.

Can refurbishment be included in the commercial mortgage?

Many lenders fund staged refurbishments through a combined facility or a separate capex line, with drawdowns against quotes and progress claims and a view to the end value.

Is owner-operator pricing different to investment lending for resorts?

Owner-operators are assessed on trading control and alignment, which lenders take comfort from, while pure investment loans lean on lease covenant strength and WALE. The terms are always the lender's call, subject to serviceability and appetite.

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.