Key Details:
- Client Type: UK Limited Company with UK UBOs
- Property Type: Prime UK hotel
- Property Value: Circa £8 million
- Loan Amount: Circa £2 million
The clients were owners of a well-established UK hotel group. They were seeking to capitalise on a strategic growth opportunity and required a circa £2 million commercial remortgage secured against one of their prime hotel assets. The funds were intended to support the acquisition of an additional UK hotel, enabling portfolio expansion over the coming years.
Following the pandemic, the hotel group, like many businesses in the hospitality sector, experienced a significant reduction in turnover and profitability. Despite repaying government-backed borrowing and returning the hotels to full trading capacity, mainstream lenders focused heavily on recent financial accounts without fully considering the wider business performance and recovery trajectory. At the same time, the group faced increased capital expenditure requirements to support occupancy and longer-term revenue growth.
Enness arranged a circa £2 million commercial mortgage secured against one of the group’s prime UK hotel assets, partnering with a specialist lender willing to take a broader view of the business and its underlying assets. The two-year facility was structured with flexibility around interest servicing, including the option to service or roll up interest, subject to the agreed facility terms. This structure allowed the business to access growth capital while managing cash flow during a period of increased capital expenditure.
Enness Global specialises in complex commercial mortgages and hotel finance, particularly where mainstream lending criteria may not accommodate the wider circumstances of a transaction. By working with specialist lenders, Enness can structure commercial property finance around the asset, business performance and individual funding requirements, subject to lender appetite and underwriting.
Disclaimer
This case study is for illustrative purposes only and does not constitute financial, legal, tax or investment advice. The client scenario has been anonymised and certain details have been generalised to protect confidentiality. Finance is subject to status, underwriting, property suitability, valuation, business performance and lender criteria. Loan amounts, lending structures, pricing and outcomes are indicative only and may vary depending on individual circumstances. Enness Global acts as a credit broker and not as a lender.
Risk Warning
Commercial property finance carries risks. Property values can fall as well as rise, and commercial property may be illiquid and take time to sell. Failure to meet repayment obligations on borrowing secured against property may result in the lender taking possession of the secured asset.
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.
