Commercial Bridging Loan to Refinance London Hotel Before Sale

The Scenario

Our client owned a 30-bed hotel in the heart of Londonvalued at £25m.

They were looking to sell the property in the next 12-18 months, but in the meantime required a bridging loan to refinance an existing short-term facility which was approaching its end. They knew that such a unique and high-value asset would take time to attract the right buyer, and the sale process would be long and technical.

As well as refinancing their existing arrangement, they would also need financial support for general business cash flow during the term, particularly during the quieter winter months.

For this reason, they also needed the new facility to have rolled interest for the full term, allowing the client to avoid large regular interest payments. Instead,they would clear the entire debt and accrued interest upon the sale of the hotel.

The Challenges

• Size of the loan: At £13.825m gross, the large facility required a lender with the capacity and appetite for high-value commercial bridging loans.
  
  
• Specialist property type: Financing a hotel poses unique challenges due to its operational complexity and reliance on the hospitality sector's fluctuating revenue streams.

The Solution

We approached two specialist bridging lenders known for their expertise in high-value commercial properties, ultimately selecting the lender offering the most competitive terms.

The chosen facility featured rolled interest for the full 18-month term, at the most competitive rate on the market.

This structure provided the client with breathing room to focus on securing the best possible sale price for the property, without the added stress of largeinterest payments.

The Outcome

Thanks to our broker's management of the facility, the funds were secured in just 9 weeks, ensuring the client could refinance the existing loan without incurring late penalties.

The business could move forward with their broader operational strategy with confidence, knowing that their financing was being handled with precision and clarity.

For complex, high-value transactions like this, the right advice and connections make all the difference. If you're facing a similar challenge, our team is here to help. Contact us now for advice and solutions.