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.