HBOS extends emergency finance to troubled hotel group

HBOS extends emergency finance to troubled hotel group


HBOS, now part of Lloyds Banking Group, has agreed to extend a £300 million loan to luxury hotel group, the Rocco Forte Collection, until a long term solution is found for the group’s cash flow problems. 

According to The Times newspaper, the group, owned by the famous British hotelier, Rocco Forte, has seen its joint venture with HBOS breach its financial covenants after a downturn in trade last year.


The joint venture with HBOS covers seven of its thirteen hotels within the group, including famous London haunt Brown’s, and the Lowry Hotel in Manchester.


Following urgent talks, and recent improved trading, the bank agreed to extend the £300 million facility for another 18 months, although it has been reported that in exchange for the extension, the Rocco Forte Collection will pay a higher rate of interest.   


Economic analysts have warned that the commercial property sector could be volatile in 2010, as billions of pounds of commercial loans are due for refinancing.

Leave a comment