Specialist capital advisory firm Arc & Co. has successfully secured a £27.5m facility to refinance the Bristol Airport Hampton by Hilton Hotel.
The hotel, owned by Ability Group, recently expanded with a 50-bedroom addition to meet high demand and continue its growth. With a total of 251 beds, the hotel has experienced strong performance, largely thanks to its prime location just a 1-minute walk from the airport terminal. This strategic positioning also supports the airport’s £300m infrastructure upgrade, which began last year.
Following instruction from the Ability Group, Arc & Co. undertook a full and thorough tender process to source the best available funding for the client. After multiple offers, Coutts emerged as the partner of choice.
The existing development finance was refinanced onto a five-year loan of £27.5m, significantly reducing the overall cost of debt for the borrower.
Arc & Co. Managing Director Edward Horn-Smith commented:
“It is heartening to see trading levels up and returning appetite from lenders willing to support the hotel sector.
“This is a space we are very comfortable in. I’ve remained heavily involved in asset management programmes as well as funding structures for a variety of hotel and other income-producing assets, ensuring that borrowers are guided through the process in what has been a tumultuous period for businesses.
“It has been a pleasure to work closely with a client whose asset has experienced such success resulting in a positive impact on their cost of debt.”
Anthony Nutkins, Director at Coutts, comments:
“We’re delighted to have supported our client in refinancing their Bristol Airport Hotel, enabling them to be a strong part of the overall airport infrastructure upgrade.
“This deal underscores our commitment to providing tailored financial solutions for high-net-worth clients, ensuring businesses have the flexibility they need to succeed. We look forward to helping our client continue building on this success.”