The borrower was an experienced UK hotel operator acquiring a freehold boutique hotel with fewer than 30 keys in a prime regional location. The purchase price was approximately £5.2 million, with trading history supported by stable occupancy and consistent EBITDA. The borrower required commercial property finance that recognised trading performance and asset quality, rather than applying generic commercial mortgage assumptions.
Conventional lenders focused heavily on historic net profit and applied conservative stress assumptions to hospitality income, materially reducing leverage. Million Plus Private Finance positioned the case with a specialist commercial lender experienced in hotel assets, presenting detailed trading performance, asset condition, and the borrower’s wider balance sheet, including retained operating liquidity.
A £3.3 million commercial mortgage facility was structured with an interest-only profile during the initial term, aligned to stabilised cashflow and reinvestment plans. The outcome enabled acquisition completion while maintaining operational liquidity, providing covenant headroom and preserving flexibility for future asset enhancement.
