Renovating a venue such as a pub, hotel, or restaurant can be one of the best investments in the long-term performance of a business. It might also be a necessary task due to damage or changing business models.
Whether you’re modernising an old pub, upgrading hotel amenities, or reconfiguring restaurant space for better footfall, securing the right financing is essential to executing your vision without compromising cash flow.
Currently, the UK hospitality space is set for a revamp, which the UK government currently recognises as ‘stifled’ by ‘burdensome red tape’.
As a result, a £1.5m Hospitality Support Scheme has been announced to help fill vacancies in the sector and allow existing renovation projects to continue.
In this guide, we outline some of the best financing options that you have and what to consider when making an application.
When is the best time to renovate?
Renovation for pubs, clubs, hotels, and cafes generally begins after the Christmas period, as this is when there is a lull in demand, as people tighten their purse strings after a heavy festive spending period.
Market traffic in 2025 saw a general decrease of 2%, with restaurants seeing the largest drop of 7.7%.
The report from Restaurant Online showed that January and February are a time for price increases, seeing a rise in both restaurants and retail, at 6% and 3% respectively.
January and February are therefore one of the best times to begin renovations, as you will have a lower footfall, and generally can take a step back from the price increases and shifting economic environment, before your grand reopening.
Why renovation is a smart business decision
Renovation is a business decision above all else, and you need to decide whether it is an affordable expense, where you are positioned in the market, and how renovations could be financed.
Here are all the reasons that you might consider a renovation in your establishment.
Operational efficiency
Renovations can enable workflow improvements, reduce energy usage, and cut maintenance costs. Renovation for energy efficiency can reduce your electricity bill by 25-40%. Even consider the fact that if you are running a pub or a restaurant, the layout could increase efficiency in delivering orders and customer comfort.
Brand repositioning
The hospitality space moves quickly. Branding can make or break an establishment very quickly, as customers will choose to go where they feel most comfortable.
A renovation could reposition your establishment as the go-to place in a particular area, and a ‘grand reopening’ can be the ideal strategy to put your brand back on the map.
Regulatory compliance
Ensuring adherence to fire safety, accessibility, or environmental standards could be a solid reason to invest in renovations.
This includes:
- Health and safety regulations
- Accessibility and accommodation (for those with disabilities)
- Data protection and privacy
- Environmental regulations
Ensuring that you are up to speed on these regulations will give you the peace of mind that you are running a legitimate business.
Asset appreciation
For owners, renovations can be an excellent method of investment, as investing in renovations can increase the value of the property itself.
Calculating your capital requirement
Before making any kind of renovations to your business, it is important to calculate how much it might all cost. Cost creep is a serious issue, and you might find that if you don’t correctly calculate costs, you could end up with a hefty bill.
To calculate capital requirements for a project, take into account everything that you might need in order to make the renovations you need.
This will likely include:
- Design, architecture, and planning fees
- Contractor and construction costs
- Fixtures, fittings, and equipment (FF&E)
- Professional services (surveyors, compliance consultants)
Also, take into account the loss of income due to a temporary shutdown. If you are closing for two weeks to renovate, then make sure you factor in how much you might have earned if you were still open for business.
Putting a detailed cost structure in place will help you understand all these costs, and furthermore, strengthen your financing application.
How to expense your renovations
Renovation is a smart business decision, even if it might seem expensive at first. If you are doing basic renovations to your pub, hotel or restaurant, then it could cost anywhere from £1,500 to £150,000, depending on the size of your establishment and the work needed.
One way to do this might be with a business loan.
With Rise Funding, you can use our free instant quote feature to find which business loan might be best for you when financing your renovations.
Using a business loan, either secured or unsecured, could be the ideal vehicle for financing your renovations.
A full loan might be suitable for larger-scale renovations and can be structured over a longer period of time. This can be adapted with fixed or variable interest rates.
At Rise Funding, we may be able to find hospitality-specific loans that will allow you to find the most suitable renovation loans, which cater to seasonal cash flow and capex cycles.
Other methods
Refinancing your existing property for additional capital could be an effective strategy, particularly if the property you own has significant value.
A merchant cash advance can be a great short-term option if you are getting a high amount of card sales coming through.
This could be an expensive option, but it provides an excellent source of capital on short notice if sudden repairs are needed.
Government-backed loans or grants are also a great option, such as the Growth Guarantee Scheme.
Build a business case for lenders
Having a detailed budget plan will help build a strong business case for potential lenders. Qualifying for a business loan application will require you to hit some key metrics, but to ensure that you are getting the best possible loan for your situation, it is best to include as much detail as possible.
Consider options like:
- Presenting a detailed budget and timeline for your renovation project
- Present financial forecasts post-renovation, such as increased footfall
- Demonstrate your track record as a business, as well as any other previous renovations
- Address considered risks, such as cash flow strain or construction delays
Presentation goes a long way in securing approval for a loan. At Rise Funding, we make sure to take each of our customers through each step of the funding process, so you can make sure you understand every aspect of your loan.
Upgrading your business
Renovation for your business can be a high-leverage move, but only if executed strategically. Before you make any kind of renovation, you should make sure that you understand all the potential risks before taking out a loan.
A renovation done correctly can be the ultimate upgrade to your business, and can help position your establishment more effectively, attract new customers, and create an overall superior customer experience.
If you are looking for a loan, Rise Funding can help find the best option for you. Whether it’s a business loan or others, we’re here to help you make a decision with confidence and guide you every step of the way if you are unsure.
Contact us via the form below, or get an instant business quote through our online questionnaire.
