Recognise Bank has funded two bridging loans totalling £5.35m against a pair of owner-operated freehold hotels in West Sussex and Buckinghamshire, refinancing existing debt and releasing additional capital for an experienced hospitality operator.
The two 18-month facilities were completed at a combined 70% LTV. Both were introduced by Harry Baker, director at Aura Capital, and Recognise Bank closed both transactions within 30 days of receiving the initial broker enquiry.
The borrower has operated in the hospitality sector for more than 25 years and holds an established portfolio of trading hotel assets. The facilities refinanced existing borrowing while freeing up capital across the two properties. One of the hotels has also received a positive pre-application response for a substantial redevelopment that could see the property expand from 52 to approximately 104 bedrooms, alongside enhanced conferencing and wedding facilities.
Recognise Bank worked alongside Aura Capital and the borrower to progress both facilities within the required timeframe, taking a commercial view of the trading assets, the operator's track record and the wider portfolio strategy.
"Completing two facilities of this size within a month required us to maintain a clear focus on the borrower's requirements and work closely with Harry Baker, Junayd Iqbal and the wider team throughout the process," said Tom Ravenscroft, lending manager at Recognise Bank (pictured).
"The borrower has significant experience in the hospitality sector and an established portfolio of trading hotels, so we were able to take a considered view of the assets and the wider strategy. This is a good example of how we can provide decisiveness, clarity and certainty when an experienced operator needs to refinance and raise capital within a defined timeframe."
"Recognise Bank understood the transaction from the outset and worked closely with us to get both facilities completed within 30 days of our initial enquiry," said Harry Baker, director at Aura Capital.
"The team quickly developed a clear understanding of the client's financial position, trading history and the strength of the wider group. This enabled Recognise to take a pragmatic view of the transaction and provide the level of leverage the client required.
"With two operational hotel assets involved, it was important to work with a lender and legal team that could properly assess the borrower's experience, the underlying trading businesses and the plans for the wider portfolio. Tom Ravenscroft and Miriam McComie at Recognise Bank remained responsive and solution-focused throughout. Their collaborative approach was instrumental in completing both facilities within the required timeframe."
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