Specialist debt advisor Arc & Co. has arranged a new £22 million facility from the neobank for entrepreneurs, by entrepreneurs, OakNorth Bank, secured against the Hampton by Hilton hotel at Edinburgh Airport.
The senior commercial loan has been provided on an interest-only basis.
Due to the hotel’s strong trading performance, the borrower (Ability Hotels) intends on extending the existing 240-bedroom property over a three-phased development adding an additional 380 keys in total. If planning consent is secured, OakNorth Bank will provide the development facility for the works.
Located opposite the main terminal building at Edinburgh Airport, the Hampton by Hilton was constructed in 2018 and provides 240 bedrooms.
Ed Horn-Smith, managing director at Arc & Co., said: “The nature of this arrangement – not only of the initial facility, but also the provision of a subsequent development loan should planning permission be secured – puts a high premium on trust between all parties. Having secured loans from OakNorth Bank in similar situations in the past, we knew they were the ideal funding partners for such a facility, and as such it is hugely pleasing to have reached a solution that works for everyone. We look forward to working with both the client and OakNorth Bank on future projects.”
Damien Hughes, Senior Director of Property Finance at OakNorth Bank, added: “Edinburgh Airport is Scotland's busiest airport and the sixth busiest in the UK, that saw over 11.2 million people travel through it in 2022, up from 3 million in 2021. The Ability Group has built up an excellent reputation for delivering high-quality hotels in areas of high demand, with its Hampton by Hilton site at Edinburgh Airport being the perfect example of this. We were delighted to work with both The Ability Group and Arc & Co. on this transaction and look forward to working with both companies again in the future.”
The Arc & Co. Group is a specialist asset finance advisory company based in Fitzrovia, London. Its three divisions – real estate, marine and aviation – allow it to provide specialist advice across a range of financing solutions, including senior debt, equity, leasing and mortgages.