FRP Real Estate Advisory secures £10m term loan for King's Cross hotel portfolio

14 September 2026

FRP Real Estate Advisory has completed a £10m term loan to refinance a portfolio of three Grade II listed townhouse hotels in Argyle Square, Bloomsbury, moments from King's Cross. The facility replaces an existing capex loan on the properties, which have recently undergone a significant refurbishment into a boutique, affordable luxury hospitality offering.

Structured at 65% LTV over a five-year term, the facility was secured to see the portfolio through its short-term stabilisation period, with very little post-refurbishment trading history in place at the time. Rather than waiting for a proven track record of occupancy and revenue, FRP Real Estate Advisory secured a lender willing to underwrite the portfolio's forecast income, reflecting confidence in the newly repositioned asset and the strength of the business plan behind it.

The transaction was led by Philip Kay, Director at FRP Real Estate Advisory, who also arranged the original capex facility behind the portfolio's refurbishment, with the client returning to mandate him again for this refinancing. Moments from King's Cross station, and within easy reach of the Eurostar terminal and the wider King's Cross regeneration district, the portfolio benefits from some of the best connectivity in the capital, reinforcing its appeal as a boutique hospitality asset in one of London's most sought-after and fastest-changing locations.

The deal comes amid renewed momentum in UK hotel investment, which reached £2.1 billion in the first half of 2026, some £500 million ahead of the same period last year, with London accounting for the majority of that activity, according to Savills.

Savills' latest UK Hotels report points to durable demand, barriers to new development and the right product as the key ingredients for outperformance in the next cycle, with active ownership and operational capability becoming increasingly important to returns, a dynamic this transaction reflects directly.

Philip Kay, Director at FRP Real Estate Advisory, commented:

"What made this deal work was finding a lender who was prepared to underwrite where this business was heading, not just where it stood on day one. There was very little trading history to point to since the capex programme finished, but the lender understood the product, backed the forecast income, and gave us a five-year term that means the client isn't back at the table again in twelve months' time.

"This is exactly the kind of outcome we want for our hospitality clients right now. London's hotel market keeps proving its resilience to investors and lenders alike, and deals like this show that well-positioned, well-run assets can access serious long-term capital even without years of trading data behind them. It's a strong marker for what boutique, affordable luxury operators in this part of London can achieve."