Recognise funds £5.35m hotel bridging deal

Recognise Bank has completed a bridging loan package totalling £5.35m for two owner-operated freehold hotels in West Sussex and Buckinghamshire.

The two loans are being used to refinance existing borrowing and raise additional capital.

The 18-month facilities were introduced by Harry Baker, director at Aura Capital, and completed at a combined 70% LTV. Both transactions completed within 30 days of receiving the initial broker enquiry.

The borrower is an experienced hotel operator with more than 25 years in the hospitality sector and an established portfolio of trading hotel assets.

One of the hotels has received a positive pre-application response for a redevelopment that could see the property expand from 52 bedrooms to approximately 104, alongside enhanced conferencing and wedding facilities.

“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 above).

“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.”

Harry added: “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.

“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.”