Luxury

Hotel

Loan amount

£29m+ at 70% LTV

Mezzanine + Senior

New to market mezz fund

A hotel and entertainment business was keen to ensure optimal rates and maximise yield

after surpassing the early repayment break with their current lender

The deal

Assets

  • Hotel in a strong location
  • Improvement works completed since initial loan
  • Luxury facilities and popular entertainment venue

Security

  • First legal charge senior debt
  • Second legal charge mezzanine debt

 


Income

  • From 100+ hotel rooms
  • From entertainment: restaurants, bars, nightclub
  • From a luxury spa

Requirements

  • £29 million+ refinance against a £42m value asset
  • Senior and mezzanine debt

 


Challenges

  • Multiple operating business lines

Facility Secured

  • 5-year term
  • Soft amortisation
  • Competitive blended margin

Summary

A hotel and popular entertainment venue sought to re-evaluate their borrowing structure after a period of consolidation and improvement. This existing loan was secured at an early stage of operation after extensive improvement work had been undertaken.

The owner saw value in refinancing at a lower margin for a 5-year term. There was a preference for soft amortisation to allow for further planned CAPEX works.

We achieved a 5-year senior-mezzanine facility with a highly competitive margin and EBITDA debt multiple. The senior debt was provided by a high street bank while the mezzanine facility was provided by a 'new to market' specialist fund.

How can we help?



Subscribe me to your mailing list

Want the details?

Colliers International Structured Finance
Second Floor, Weighbridge House, Liberation Place, St.Helier, JE2 3NA, Jersey.

+44 1534 767 600
structuredfinance@colliers.com

Subscribe to Colliers news and events