Recognise Bank has completed two bridging loans totalling £5.35m secured against freehold hotels in West Sussex and Buckinghamshire, refinancing existing debt for an operator with more than 25 years in the hospitality sector.
The two 18-month facilities were completed at a combined loan-to-value ratio of 70%. Both transactions were introduced by Harry Baker, director at Aura Capital, and closed within 30 days of the initial broker enquiry.
Transaction details
The borrower operates an established portfolio of trading hotel assets and used the facilities to refinance existing borrowing whilst releasing additional capital across the two properties. One hotel has received a positive pre-application response for redevelopment that would expand capacity from 52 to approximately 104 bedrooms, alongside additional conferencing and wedding facilities.
The deal comes as mortgage costs continue to rise across the property sector, with bridging finance remaining a key option for operators requiring short-term capital solutions.
Tom Ravenscroft, lending manager at Recognise Bank, said: “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.”
Broker perspective
Harry Baker, director at Aura Capital, noted that the lender “understood the transaction from the outset” and completed both facilities within 30 days of initial enquiry. He added that the team “quickly developed a clear understanding of the client’s financial position, trading history and the strength of the wider group.”
The transaction reflects ongoing activity in the commercial property finance sector, even as buy-to-let company formations have declined for the first time since 2008.
The deal demonstrates continued appetite for bridging finance in the hospitality sector, particularly for experienced operators with established portfolios seeking to refinance and access capital for expansion plans within tight timeframes.
