LHV Bank provides £2.3m facility to support hotel acquisition amid group restructuring

27 February 2025

LHV Bank has successfully delivered a £2.3 million commercial investment loan to assist with the acquisition of a UK-based hotel.

The transaction, introduced by Chris Field and Billie Cox of Sirius Finance, provided essential support to a sophisticated borrower undergoing a strategic group restructuring of their hotel assets.

The borrower, a well-established business with multiple trading hotels under ownership, had previously been let down by several funders and faced a critical time constraint as their existing bank had served notice. Additionally, the purchase involved transitioning ownership from an offshore entity into a newly formed UK SPV, adding further complexity.

LHV Bank structured a commercial investment loan with a five-year term, based on a 20-year amortisation profile. Instead of requiring personal guarantees from the two shareholders, LHV Bank proceeded with a debenture on the SPV. The loan was agreed at 66% of the market value, ensuring a structured and manageable financing solution for the borrower. To facilitate a smooth and expedited process, solicitors were instructed early, ensuring a seamless transaction.

By offering a long-term financing structure without the need for personal guarantees, LHV Bank provided the borrower with the stability required to complete the acquisition.

LHV Bank, a fully licensed UK bank, specialises in providing Banking Services for global fintechs, SME Lending solutions for UK businesses, and Personal Savings through partnerships with deposit aggregators. As a leading Banking Services provider, LHV Bank delivers a wide range of services. Over 200 renowned fintech companies utilise LHV Bank to serve more than 10 million end customers and to access a pool of 500 million potential customers across the UK and Europe. The SME Lending division offers commercial real estate investment loans and trading loans from £0.5m to small and medium-sized businesses in the UK.

Lee Albino Lending Director at LHV Bank, commented:

"This transaction aligns with our strategy to support experienced borrowers and high-quality assets. As traditional lenders stepped back, we are perfectly placed to provide flexible financing options that enable businesses to fulfil their ambitions. This deal reinforces LHV Bank’s position as a key partner in the commercial property space, ensuring clients receive the bespoke support they need.

Chris Field, Director at Sirius Finance, stated:

"This deal underscores the importance of having a lender who truly understands the complexities of the market. LHV Bank's ability to grasp the nuances of the deal and offer a solution that aligned perfectly with the borrower’s requirements was commendable. Working with a lender who can act swiftly while maintaining a pragmatic approach to underwriting was integral to the success of this deal, and we look forward to working with the team at LHV in the future.”