- Approximately £810,000 initial loan
- Circa £1.80 million refurbishment facility
- Approximately 65% loan-to-gross development value
A highly experienced international hotel operator approached Enness Global seeking to expand their hospitality portfolio into the UK market. The client had identified a hotel in the Scottish Highlands with a purchase price of approximately £1.30 million and a clear vision to transform the asset into a luxury events venue targeting both domestic and international clientele. Given the scale of refurbishment required, the client needed a lender capable of supporting both acquisition and redevelopment funding.
Securing finance for hospitality assets has become increasingly complex, particularly in regional locations such as the Highlands, where lender appetite is limited. Many lenders remain cautious about the sector and are reluctant to support large refurbishment facilities, particularly where the property will remain commercial long term. The transaction required a lender comfortable with both the asset class and the projected value uplift to a gross development value of circa £5 million.
We structured a facility providing approximately 70% loan-to-value on day one, enabling an initial loan of £810,000 to complete the acquisition, alongside a refurbishment facility of circa £1.80 million. The overall structure represented approximately 65% loan-to-gross development value. Crucially, the lender also committed to a long-term commercial mortgage at a market-aligned pricing structure following stabilisation and a period of successful trading, providing a clear and strategic exit route.
Disclaimer:
This case study is for illustrative purposes only. Development finance is subject to status, underwriting, asset suitability, and lender criteria. Borrowing against property carries risk, and failure to maintain repayments may result in repossession of secured assets. Terms and outcomes are not guaranteed.
Information contained in our case studies is for market and illustrative purposes only. In some cases, these may be made up of multiple cases and are for illustrative purposes only.
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Property values can fall as well as rise, and you may not get back the amount originally invested. Property investments can be illiquid and may take time to sell. Where borrowing is used, your property may be repossessed if you do not keep up repayments on a mortgage or other loan secured against it.
