£6m Acquisition to Expand a Hotel Chain
Resurrecting a hotel portfolio
Loan Size: £6m
Location: Across England
Loan Type: Acquisition
Security Type: Hospitality (Hotels)
Term: 24 months
About the Deal
The client approached us to assist with an acquisition bridge loan to purchase several buildings to expand an existing hotel chain portfolio.
The acquisition was to purchase a portfolio of former hotels that had been shut down, and required work and new operational teams.
The nature of the transaction was that of a reduced purchase price due to the collective purchase, and the client required a lender to understand the true value of the assets to achieve maximum LTV for purchase.
Once purchased and the refurbishment was complete, the borrower had 18 months to begin operating the hotels and refinance onto a commercial mortgage with 12 months of accounts.