Category Archives: Hotel Finance & Funding

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Commercial property lenders case study – Highfield Hall Hotel

The Objective

  • Lorraine and Richard Earl had family connections to the hospitality industry and after an established career as an accountant; Lorraine persuaded her husband Richard, who had been in the automotive industry, to follow their family into the trade. After many months of research, they identified Highfield Hall near Chester as their ideal business opportunity.
  • Highfield Hall Hotel represented tremendous value, but traded well below its potential as a result of the vendors low key approach to the trade over several years pending retirement. It would therefore represent a challenge to most uk commercial lenders debt criteria.

The Solution

  • After meeting with various commercial property lenders it became evident that debt could only be offered if supported by an additional source of income. This would be until such time as the business could service the debt (when stress tested) in its own right.
  • A lender was ultimately sourced that offered to accept a personal guarantee in favor of debt servicing. This would make additional funds available in support of debt service, if it became an operational necessity to do so.

The Result

The commercial mortgage offered:

  • was ultimately secured by Stewart Hindley & Partners without the need for any personal guarantees and at very competitive market rates, given the unique nature of trade given the pending retirement of the owners.
  • enabled the Earls to purchase Highfield Hall at a competitive price on a viable interest rate, over a term of 20 year
  • allowed for the business to service the debt within the commercial lenders criteria, without duress to cash flow.
  • meant the Earls could focus on developing and managing their trade, rather than worrying about meeting day to day cash flow requirements.

Comments

With Stewart Hindley & Partners working for us, we felt totally assured and confident that the debt would be offered within our and the vendor’s timescales. Without their support its doubtful today that we’d be the proud owners of Highfield Hall.

Lorraine & Richard Earl
Highfield Hall Hotel

http://www.highfieldhallhotel.co.uk

Stewart Hindley & Partners have a team of brokers who are qualified accountants and who really understand the hospitality sector. We are in a perfect position to secure you the best commercial mortgage deal for you, from a choice of commercial property lenders. Contact us now for further details.

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Hotel Finance Case Study – Wrea Head Hall

An elegant Yorkshire hotel set in acres of landscaped grounds, in the village of Scalby on the edge of the North York Moors National Park. This stunning Gothic mansion with uninterrupted views across the Yorkshire countryside is arguably the best of all the Scarborough Hotels and just a short drive from the Yorkshire Heritage coast.

The Objective

We were approached by this “new to trade” hotel operator, who was seeking to raise hotel finance to refurbish the interiors to contemporary standards and offer fine dining. to assist with the purchase and to maintain and develop the hotel’s traditional and historic connections.

The Solution

An initial meeting with Stewart Hindley & Partners helped the operator to gain a real understanding of the different hotel loan and hotel finance options which would be available to them, taking into account that they were new to the trade. Stewart Hindley & Partners are able to provide un-paralleled access to prime and specialist lenders throughout the UK which ensured that the owners of Wrea Head Hall were able to select exactly the right funding solution to meet their particular needs.

The Result

Stewart Hindley & Partners put together an application for Wrea Head Hall, complete with a business and marketing plan which included compilation of revenue and cash flow projections. A decision in-principle loan offer, subject to valuation, was secured within 72 hours from receipt of the application which meant that Wrea Head Hall were able to start planning their refurbishment works prior to taking on the business.

Wrea Head Hall is now home to one of the best restaurants in Scarborough “1881” serving delicious contemporary British cuisine in classic surroundings. Named after the date the house was built, the restaurant oozes class with gold glistening from the hand-blocked wallpaper and antique mirrors and beautiful gilt wall lights set above polished oak panelling. The refurbishments also included a classically decorated private dining room, complete with crystal chandelier and a bar which is a mix of classic and contemporary design complete with original oak panelling, original sculptures and works of art.

Comments

When deciding to embark on a major change in business we felt that trying to take on the sourcing of financial support ourselves, with the many other things that needed our attention to bring this project to life, was not the best use of our time; and we were recommended to Stewart Hindley. We found that Chris had just the right mix of business and financial experience to allow us to discuss our plans with him fully, before finalising our requirements. We were very happy with the service we received and would recommend Stewart Hindley to anyone needing support for a major project.

Gerry Aburrow, Proprietor of Wrea Head Hall

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Hotel Finance Case Study – Fortingall Hotel, Perthshire Scotland

A Scottish Tourist Board four star, historic country house hotel, with 12 bedrooms under independent ownership. This hotel is a cinematic landmark, having been the location for the filming of the famous 1959 movie, The 39 Steps.

The Objective

This proven hotel operator, with a track record of successful hotel management elsewhere in Scotland, was seeking to raise hotel finance to assist with the purchase and to maintain and develop the hotel’s traditional and historic connections.

The Solution

An initial meeting with Stewart Hindley & Partners ensured a real understanding of their financing requirements and analysed the advantages and disadvantages of the different hotel finance options that would be available to them given their circumstances.

Stewart Hindley & Partners’ track record in hotel lending, provided un-paralleled access to prime and specialist lenders throughout the UK ensured that the owners of the Fortingall Hotel had a funding solution that met their immediate and future mortgage funding requirements.

The Result

A decision in-principle loan offer, subject to valuation, was secured within 72 hours from receipt of the clients supporting information together with a business and marketing plan which included revenue and cash flow projections all compiled by Stewart Hindley & Partners.

A transaction date, of six weeks ahead, was set and the target date met.

Purchasing the freehold freed up enough working capital for the new owners to invest in on-going refurbishment. The Hotel has since received excellent reviews on Trip Advisor with many comments on the beauty of the building and tasteful decor.

Comments

We were recommended to Stewart Hindley by other hotel operators and key professionals within the hospitality sector . We had used other brokers in the past but all in all found these to be quite a mixed bag. First impressions were encouraging – we ran several hotel loan options through Stewart Hindley before arriving at a target purchase. Their input throughout the process was first class – incisive, sharp and immediate.

Thanks to Stewart Hindley, our project won support from the banks . Their preparatory work set us on the right course with an appropriate lender. Good relationships were forged at an early stage and credible honest assessments presented on the potential of our proposed hotel investment . This helped hugely. Winning the trust and confidence of backers in the current market is the key to success and Stewart Hindley have the skills and light touch to achieve this.

Their support and interest did not dry up on completion of our deal. They have stayed with us – maintaining contact and providing encouragement . We will most certainly be considering further projects with Stewart Hindley in the near future – they have given us the confidence to grow.

Robbie Cairns, Proprietor of The Fortingall Hotel