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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