A boutique hotel group sought to acquire an historic 5-star hotel in Knightsbridge while simultaneously renovating a 48-room seafront property in Brighton. Their existing lender was unwilling to support a dual-project structure due to perceived operational risk and uneven seasonal cashflow. The seller of the London asset also required a compressed completion window to avoid administration proceedings.
Million Plus Private Finance consolidated both assets into a single lending facility with a private bank experienced in hospitality underwriting. We used a blended valuation approach combining stabilised EBITDA projections with proven performance indicators from the group’s existing assets. The result was a £32.5m structured loan at 67% loan-to-value with an interest-only period to support refurbishment expenditure. Completion occurred within four weeks, and the Brighton property reopened three months later, increasing group trading income by more than 22% year-on-year.
