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£48M Short Term Hotel Finance

12th May 2022
HEAD OF SPECIALIST LENDING

Chris Whitney

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£48M Short Term Hotel Facility
Chris Whitney
HEAD OF SPECIALIST LENDING

Chris Whitney

Key Facts: 

  • Client: Offshore SPV
  • Gross loan: £48,000,000
  • LTP: 80% 
  • LTV: 60% 
  • Lender arrangement fee: 1%
  • Interest rate: 6.35% (fixed) first 6 months rolled, then paid monthly in arrears
  • Term: 18 months
  • Exit fee: 2%

Hotel finance can be used to purchase an existing asset, construct a new hotel, or renovate, remodel, or refurbish a hotel. In this case, we assisted a Swiss Fund purchasing a 5 star hotel from the receiver. The client had no UK hotel experience or UK credit footprint. What is more, they had no current trading figures or historic accounts. 

The client was looking for a facility to get the hotel back on its feet and extend the facilities into a neighbouring property they also owned. Once the client had a year's trading record, they would be able to re-bank on to a mainstream term loan. 

With hotel financing, every transaction is unique. The corporate entities and geographies covered in every deal will be different, so every deal will need to be financed and structured from scratch. You will also need to ensure your finance is optimised from a fiscal perspective.

The very nature of hotels means that complex and international ownership structures are the norm. Properties are often located in various countries, and they are held through different corporate structures. Working with lenders who are comfortable with international lending and understand how your properties are structured is critical to success.

Enness has close contacts with all the lenders who offer hotel finance for international deals. No matter how complex your ownership structures are, or if you need finance for a project with an international element, Enness’ broker will source the best hotel finance deal for you. You will also benefit from the team’s ability to optimise the tax efficiency of your finance with an advantageous legal structure.

Capital is available for every deal size. Whether you need finance to buy a privately-owned boutique hotel or you're looking to construct a large hotel in the heart of a capital city. Enness will be able to source the very best finance for you.