Ortus completes £10.7m stabilisation facility for UK hotel portfolio

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Ortus Secured Finance has completed a £10.7m facility to refinance existing debt across a portfolio of three operational hotels in the UK, supporting the borrower through a period of operational transition and EBITDA recovery.

The portfolio comprises 228 keys across three regional locations. The assets had been trading under elevated operating costs and legacy management structures, with the borrower requiring a lender able to underwrite current income while providing time to rebuild performance.

The 36-month facility refinances existing term debt and provides runway to implement an operational turnaround, including the appointment of a new hotel management company across all three sites.

Cost efficiencies have already been identified, with a refinance or portfolio sale targeted as the exit.

Matt Boggan, Relationship Director at Ortus Secured Finance, said:

“This transaction required a pragmatic approach, focusing on the underlying strength of the assets and the borrower’s plan.

The structure provides the time needed to stabilise performance and move towards a sustainable refinance.”

The transaction was introduced by Lathro, with PSJ Hospitality Limited as the borrower. Artemis Hotels Management act as the hotel management company, with KHI Albury Limited advising the group.

The deal highlights Ortus Secured Finance’s approach to supporting operational real estate through periods of transition, applying an income-focused and pragmatic underwriting strategy.

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