Two entrepreneurs have secured a £1.8m bridge-to-term loan from Allica Bank to reopen and transform the Holm House Hotel on the Vale of Glamorgan coast, which closed last year.
Kashif Ahmed and Rushna Ghaznavi, who as their day jobs own and run local accounting firm Agnitio Accountants, secured the finance from Allica following an introduction from financial platform Capitalise.com.
They had initially struggled to find a backer from the high-street banks as the hotel didn’t have any recent trading activity to support the application.
Senior funding specialist George Corrigan at Capitalise introduced KAhmed and Ghaznavi to Andy Reeder at Allica Bank, who suggested a bridge-to-term loan as a solution.
Initially starting out as a bridging loan, it would enable the entrepreneurs to build up a trading history for the hotel before switching automatically onto a standard commercial owner-occupier mortgage when agreed conditions are met.
Ahmed said: “Our plan is to run things very differently to before.
“Instead of operating as a standalone hotel, we are bringing together a collective of best-in-class operators to manage the rooms, the restaurant and the spa individually.”
“Holm House is deeply rooted in Penarth’s rich history and we’re delighted to play a part in keeping it alive. Rushna and I have ambitious plans to further develop Holm House as a luxury destination perfectly positioned between nature and culture.
“For example, we are already actively exploring potential partners for a new wellness centre.”
He added: “Hotels, restaurants, pubs – the whole hospitality sector – are a critical part of Britain’s economy and our communities. But they really struggle to find the finance they need from the traditional banks to grow.
“We’re fortunate that Capitalise.com connected us with Allica Bank, who were willing to listen and understand our vision for Holm House. The high-street banks didn’t even give us a look in.
“George and the team took what could have been a stressful, uncertain process and turned it into something simple and straightforward.
“Knowing from day one that our long-term finance was secured gave us the confidence to focus on growing the business. The bridge-to-term loan really was the perfect fit.”
Andy Reeder, business development manager (BDM) at Allica Bank, said: “When we spoke with Kashif and Rushna about their plans for Holm House, their passion and vision for the property were infectious.
“I’m delighted that Allica are able to support them and help give this iconic hotel a new lease of life.”
George Corrigan from Capitalise, added: “Hospitality sector businesses need all the support they can get right now, but are all too often left wanting.
“That’s why it’s critical the expertise is there to help them find the funding they need to grow.
“The whole Capitalise team is looking forward to seeing how Kashif and Rushna realise their vision for Holm House.”
