Octopus Real Estate provides £19.25 million refinancing facility for Hampton by Hilton Hotel

By Bridging Loan Directory 28th November 2019

Octopus Real Estate, part of the Octopus Group and a leading UK specialist real estate lender and investor, has worked with Arc & Co to complete the £19.25 million refinancing of a city centre Hampton by Hilton hotel.

The purpose-built 200-bedroom hotel was developed by the borrower in 2013 and provides facilities including restaurants, bars, coffee-shop, conference centre, gym and generous on-site parking.

The hotel is centrally located in a prime South East city. It is directly opposite several major transport connections, at the heart of a major mixed-use development and regeneration scheme. With easy access to central London, the hotel benefits from strong leisure and business client occupation, underpinning its consistently robust performance.

The loan is the latest in a series of hotel financings completed by Octopus Real Estate. Over £235 million has been deployed across 40 loans secured on branded hotels and consented hotel sites across the country, with locations including Bournemouth, London, Manchester, Newcastle and Glasgow.

Arc & Co, who have recently completed record lending volumes, acted for the borrower, an established private investor, with multiple commercial and residential property portfolios. The loan represents the sixth time that Octopus Real Estate has provided funding to the borrower.

Dominic Gibson, pictured, Investment Director at Octopus Real Estate, said:

“This is another significant UK hotel financing for Octopus Real Estate. The sector has performed well throughout uncertain times, and our appetite for funding branded hotels is extremely strong. We have worked closely with Arc & Co for many years, providing funding to their high-quality client base across a range of asset classes. Broker relationships and repeat business underpin our lending and we are extremely grateful to Arc & Co for their continued support.”

Edward Horn-Smith, Managing Director – Structured Finance at Arc & Co, commented:

“We are always excited to work with a borrower to help them structure and expand their real estate portfolios. The loan provided by Octopus Real Estate has once again supported an important client of ours who has a proven ability in the real estate development, investment and management markets.”