Hotel Refinance for a Boutique Operator in the Lake District
£4,200,000 · 15 years · 6.60% fixed 5 yrs. A family-owned boutique hotel in the Lake District with 22 en-suite rooms needed to refinance a legacy commercial mortgage that had been in place for nine years at an uncompe...
The Client
Family-owned boutique hotel
The Challenge
A family-owned boutique hotel in the Lake District with 22 en-suite rooms needed to refinance a legacy commercial mortgage that had been in place for nine years at an uncompetitive rate. The hotel had been significantly refurbished and repositioned upmarket since the original mortgage was placed, and the current valuation substantially exceeded the original purchase price.
Our Solution
Doulton's whole-of-market search identified a specialist hospitality lender offering considerably better terms than the existing lender's retention offer. The upmarket repositioning was evidenced through three years of improved RevPAR (revenue per available room) data and Tripadvisor ratings in the top 5% for the region.
The Outcome
Refinance completed at a rate 0.95% below the existing facility. Annual mortgage saving: £39,900. Surplus cash flow reinvested into a spa extension planning application. Key highlights: Rate 0.95% below existing facility - £39,900 annual saving; RevPAR data and review ratings supported repositioning story; Surplus cash flow funding spa extension planning.