FRP Real Estate Advisory secures £10m refinancing for King’s Cross hotels
The 5-year facility was agreed at 65% loan-to-value (LTV) and replaced an existing capital expenditure loan.
FRP Real Estate Advisory has secured a £10m term loan to refinance three Grade II-listed townhouse hotels in Argyle Square, Bloomsbury.
The 5-year facility was agreed at 65% loan-to-value (LTV) and replaced an existing capital expenditure loan.
The properties recently underwent refurbishment to provide boutique hotel accommodation.
The loan covered the portfolio’s short-term stabilisation period despite limited trading history following the refurbishment.
The lender based its decision on forecast income and the business plan for the properties.
Philip Kay (pictured), director at FRP Real Estate Advisory, led the deal after arranging the original capital expenditure facility for the refurbishment.
Kay said: “What made this deal work was finding a lender who was prepared to underwrite where this business was heading, not just where it stood on day one.
“There was very little trading history to point to since the capex programme finished, but the lender understood the product, backed the forecast income, and gave us a five-year term that means the client isn’t back at the table again in twelve months’ time.
“This is exactly the kind of outcome we want for our hospitality clients right now.”
Kay added: “London’s hotel market keeps proving its resilience to investors and lenders alike, and deals like this show that well-positioned, well-run assets can access serious long-term capital even without years of trading data behind them.
“It’s a strong marker for what boutique, affordable luxury operators in this part of London can achieve.”
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