FRP Real Estate Advisory has completed a £10m term loan to refinance a portfolio of three Grade II listed townhouse hotels in Argyle Square, Bloomsbury, close to King's Cross station.
The facility replaces an existing capex loan on the properties, which recently underwent a significant refurbishment, positioning them as a boutique, affordable luxury hospitality offering.
Structured at 65% LTV over a five-year term, the deal was arranged during the portfolio's stabilisation period, when very little post-refurbishment trading history existed. Rather than waiting for an established track record of occupancy and revenue, FRP identified a lender willing to underwrite the portfolio's forecast income, a decision reflecting confidence in the repositioned asset and the business plan behind it.
Philip Kay, director at FRP Real Estate Advisory, led the transaction. He had also arranged the original capex facility behind the portfolio's refurbishment, with the client returning to instruct him for this refinancing.
The Bloomsbury portfolio sits within easy reach of King's Cross station, the Eurostar terminal and the wider King's Cross regeneration district, giving the hotels strong transport links and proximity to one of central London's most active development zones.
The deal comes amid a period of renewed momentum in UK hotel investment. According to Savills' latest UK Hotels market report, total UK hotel investment reached £2.1bn in the first half of 2026, around £500m ahead of the equivalent period in 2025, with London accounting for the majority of that activity.
Savills identifies durable demand, barriers to new development and appropriate product as the key conditions for outperformance in the next cycle, noting that active ownership and operational capability are becoming increasingly important to returns.
"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," said Kay (pictured).
"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. 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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