The short version
A hotel or pub loan is a commercial loan to buy, refinance or expand a licensed venue: a pub, hotel, tavern, motel or licensed club.
Buy the building too and the lender has property to hold, so it usually lends more. Buy the business only and it usually lends less.
For cafes, restaurants and fit-outs, see our page on hospitality finance.
Freehold or leasehold
A freehold going concern (FHGC) means buying the building and the business together. A leasehold going concern means buying the business only and leasing the building from its owner.
| Freehold going concern | Leasehold or business only | |
|---|---|---|
| What you buy | Land, building, business and licence | Business, licence, plant and the lease |
| Main security for the lender | A mortgage over the property | Goodwill, plant and the lease |
| Lender appetite | Wider. Banks, non-banks and private lenders | Narrower. Fewer lenders will lend against goodwill |
| Usual deposit | Smaller | Larger |
| What the lender checks most | Trading and property value | Lease term, rent and trading |
On a leasehold deal, lenders want enough years left on the lease, plus options, to cover the loan term. Many also want a landlord's deed that lets them step in if things go wrong.
How lenders carve up the price
You pay one price for a pub, but the lender breaks it into parts.
| Part | What it is | How lenders treat it |
|---|---|---|
| Freehold | The land and the building | The strongest security. Lent against like other commercial property |
| Goodwill | The value of the trade itself | Lent against with care, or not at all by some lenders |
| Poker machines | The machines and any entitlements or licences tied to them | Valued on gaming income. Rules differ by state |
| Plant and equipment | Kitchen, cool rooms, furniture, fit-out | Often funded on its own through asset finance |
On an FHGC sale, the lender usually lends a share of a going-concern valuation, meaning the value of the business as a trading venue. The split also affects tax and stamp duty, so have your accountant check it before you sign.
The liquor licence can hold up settlement
The liquor licence doesn't move to you with the keys. The state regulator has to approve you first, and that's the biggest timing risk.
The Queensland Government's business site says a new operator can't sell or supply liquor until it gets an interim authority to trade, which is a temporary licence to trade. It says these typically take 2 to 3 working days to process if all requirements are met (page updated 6 August 2026, checked October 2026). The same page says a buyer of a venue with a gaming machine licence must apply for a new one, and that this generally takes longer.
Most lenders want the transfer lodged early, and some want the interim authority or approval in hand before they settle. Allow for it in your contract and finance clause, and get a liquor licensing lawyer in early.
Poker machine entitlements
Each state sets its own gaming rules. In some, the right to run machines is an asset you can buy, sell or move between venues. In others, a new owner has to apply for the licence again.
In New South Wales, a transfer of gaming machine entitlements needs approval from the Independent Liquor and Gaming Authority. Liquor & Gaming NSW publishes the forms for it (checked October 2026). Approval isn't automatic, so allow for it.
Some lenders like steady gaming income. Others get nervous when a venue relies heavily on it. If pokies are a big part of your trade, find out which lender is which before you apply.
What lenders look at
A venue loan is assessed much like any other business loan, plus a few extra checks.
The venue's books
Most lenders want two to three years of financial statements, checked against the bank statements. Monthly accounts help because they show the quiet months. Lenders also want the split between bar, food, gaming and accommodation, and look harder at a venue that leans on one.
EBITDA
EBITDA is profit before interest, tax, depreciation and amortisation. Lenders use it to work out how much debt the pub can carry, and often adjust it for costs that won't carry over after the sale.
Your experience
Home Loan Experts, a mortgage broker, says lenders prefer three years of experience as a successful publican if you'll manage the business yourself (page updated 1 September 2026, checked October 2026). A first-time buyer with a strong venue manager can still get there.
The valuation
The lender orders the valuation, and the trade drives the number as much as the building does. If it comes in under the price, the lender lends against the lower figure.
Typical LVRs and terms
Most banks don't publish venue LVRs. These figures come from one broker's public pages, so use them as a guide, not a quote.
| Deal type | Max LVR (Home Loan Experts) |
|---|---|
| Pub, freehold with gaming | Up to 65% of purchase price |
| Pub, freehold without gaming | Up to 50% of purchase price |
| Pub, leasehold with gaming | Up to 50% of a going-concern valuation by a bank-instructed valuer |
| Hotel or motel, leasehold with gaming | Up to 70% of a going-concern valuation by a bank-instructed valuer |
Source: Home Loan Experts pub loan and hotel loan pages, both updated 1 September 2026, checked October 2026.
The same broker quotes a maximum of three years interest only and five years principal and interest on its pub and hotel loans. It says loans over $5M are assessed case by case. Some lenders go higher. A weak lease or patchy trading pulls the number down.
Bank, non-bank and private lenders
Westpac and Bank of Melbourne both have hospitality and accommodation teams, and Bank of Melbourne says it has specialised in hospitality and accommodation banking for over a decade (checked October 2026). Banks have the sharpest pricing but want strong trading and an experienced operator.
Non-bank lenders may lend against goodwill when a bank won't, but cost more. See our guide to bank vs non-bank lenders.
Private lenders suit short-term problems, like a settlement that can't wait for a bank. It's usually a bridge, with a plan to refinance out. We arrange private lending through our private lending brokerage, Aurelius Private. It's a brokerage, not a lender.
For the freehold on its own, see how commercial mortgages work.
Two lenders on one venue
We did this on a caravan park purchase, which, like a pub, is part property and part business. The banks assessed it as one deal and capped out at 40% of the purchase. We put a private lender on the freehold as a first mortgage and a cashflow lender on the goodwill. The buyer settled at 55%, on a two-year term, with a plan to refinance back to a bank once the trading history was in place.
A pub works the same way, with plant on asset finance if needed. It adds cost and paperwork, so only do it when one lender won't cover you.
Documents you'll need
Most lenders will ask for:
- the contract of sale, or the current loan statements for a refinance
- two to three years of the venue's financial statements
- recent management accounts, bank statements and a revenue breakdown by bar, food, gaming and accommodation
- the lease, for a leasehold purchase
- details of the liquor licence and any gaming licences or entitlements
- your resume, showing your hospitality experience
- a business plan with cash flow forecasts
- tax returns and a statement of assets and debts for each buyer and guarantor
Most lenders also want a personal guarantee from the directors. Gaps in the file slow a venue deal more than the lender does.
How we help
Aurelius Capital is a broker, not a lender. We work with 130+ lenders, including banks with hospitality teams, non-banks and private lenders. We'll tell you early which lenders will look at your deal and line the finance up with the licence transfer.
Got a venue under contract or a refinance in mind? Send us the details or call 1300 094 529. All finance is subject to lender approval.
This is general information, not legal, tax or financial advice. Lender policies change, and the figures above are what each source published when we checked in October 2026.
Aurelius Capital Group Pty Ltd is Credit Representative 560751 of Viking Money Pty Ltd, Australian Credit Licence 471435 (Viking Aggregation Pty Ltd).
Sources
- Pub loans (Home Loan Experts, updated 1 September 2026)
- Hotel loans (Home Loan Experts, updated 1 September 2026)
- Transferring a liquor licence (Queensland Government, updated 6 August 2026)
- Gaming machine threshold increase and entitlement transfer, hotel (Liquor & Gaming NSW)
- Hospitality and accommodation banking (Bank of Melbourne)
- Hospitality banking (Westpac)