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LHV Bank provides £2.3m facility to support hotel acquisition amid group restructuring

The transaction, introduced by Chris Field and Billie Cox of Sirius Finance, provided support to a borrower undergoing a strategic group restructuring of their hotel assets.

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LHV Bank provides £2.3m facility to support hotel acquisition amid group restructuring
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LHV Bank has delivered a £2.3m commercial investment loan to assist with the acquisition of a UK-based hotel. 

The transaction, introduced by Chris Field and Billie Cox of Sirius Finance, provided support to a borrower undergoing a strategic group restructuring of their hotel assets.

The borrower, a business with multiple trading hotels under ownership, had previously been let down by several funders and faced a critical time constraint as their existing bank had served notice.

Additionally, the purchase involved transitioning ownership from an offshore entity into a newly formed UK SPV, adding further complexity.

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LHV Bank structured a commercial investment loan with a 5-year term, based on a 20-year amortisation profile.

Instead of requiring personal guarantees from the two shareholders, LHV Bank proceeded with a debenture on the SPV.

The loan was agreed at 66% of the market value.

Lee Albino (pictured), lending director at LHV Bank, said: “This transaction aligns with our strategy to support experienced borrowers and high-quality assets.

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“As traditional lenders stepped back, we are perfectly placed to provide flexible financing options that enable businesses to fulfil their ambitions.

“This deal reinforces LHV Bank’s position as a key partner in the commercial property space, ensuring clients receive the bespoke support they need.”

Chris Field, director at Sirius Finance, added: “This deal underscores the importance of having a lender who truly understands the complexities of the market.

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“LHV Bank’s ability to grasp the nuances of the deal and offer a solution that aligned perfectly with the borrower’s requirements was commendable.

“Working with a lender who can act swiftly while maintaining a pragmatic approach to underwriting was integral to the success of this deal, and we look forward to working with the team at LHV in the future.”

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