FRP Real Estate Advisory secures £85m high street funding for South West hotel portfolio

04 August 2026

FRP Real Estate Advisory has completed a £85m facilities package from a high street bank secured against a portfolio of three owner-operated hotels in the South West, supporting the borrower's next phase of growth.

The transaction was led by Cameron Hayes, Director at FRP Real Estate Advisory, on behalf of a privately owned hotel group and client with a 20-year operating track record. The hotel portfolio comprises one established, fully operational site alongside two recently refurbished hotels currently stabilising and ramping up trading.

The facility comprises a £75m bilateral loan on a five-year commitment, refinancing the incumbent lender, together with a further £10m committed accordion to be released as the two newly refurbished hotels open and stabilise. The loan is structured on an interest-only basis with a bullet repayment at the end of the commitment term. Margin ratchets from 1.9% above SONIA at leverage above 9.5x down to 1.6% above SONIA once leverage falls below 7x, with the same pricing mechanics applying to the accordion.

The process was notable for the number of structural turns it took. The mandate began as a mezzanine financing request, and FRP ran a full process across the mezzanine and whole loan markets before concluding that a senior structure with an accordion mechanism delivered materially better value. Given the borrower's profile and track record, multiple credible options were available throughout; the value lay in identifying the right one rather than simply securing terms.

“With a borrower of this calibre, options were never the constraint - selecting the right structure was,” said Cameron Hayes, FRP Real Estate Advisory. “We explored several routes before arriving at a senior facility with a committed accordion, which gives the client capital as value builds rather than requiring them to pay for it upfront. Long-standing relationships with the lender’s hotel team were central to getting a structure of this complexity agreed at pace. This is our fourth transaction with the client, and it’s a genuine pleasure to keep supporting a business with this much ambition.”