Cambridge and Glasgow hotel project

This round of fund raising will part finance the acquisition of two properties, one in central Cambridge and one in central Glasgow. Each of these properties will be redeveloped and converted into a hotel for 57 keys and 96 keys respectively. Planning permission was granted on both sites in summer 2019. In addition to the acquisition of the Cambridge and Glasgow sites our client intends building up a portfolio of city hotels in London, Edinburgh, Cardiff, Brighton and Bath.

The investment strategy of our client is to focus on redeveloping existing properties in prime locations in city centres by focusing on an affordable pricing strategy, delivering 4-star plus fit outs but without the F&B component of a full service hotel. This is expected to maximise sellable (room) space and reduce overheads therefore enhance profitability.

Our client has successfully redeveloped and operates an award winning 5 star hotel in the Scottish Highlands.

Summary details

LocationCambridge, Glasgow
Investment vehicleLoan note
Gross Development Value£27m
Project duration36 months
Total number of rooms153
Planning consentGranted
SecurityParent company guarantee and second charge
EXTERNAL INVESTMENT REQUIRED 
Debt required
£6m
Interest rate10% per annum