ASK Partners funds £24.6m loan facility for Hilton Hotel at Bristol Airport
Real estate funding specialist, ASK Partners has provided a 36-month loan facility of £24.6m, secured against a 201-key hotel at Bristol airport managed by Hilton Hotels, under their Hampton by Hilton brand. Ability Group, which owns the long leasehold on the property, was advised by asset finance advisers Arc & Co.
The facility is being used to refinance an existing loan and fund an extension to the hotel which will provide a further 50 bedrooms.
In June this year, the airport reached a one million passengers per month milestone and has recently received planning permission to undergo an expansion. The expansion includes upgrades to the terminal building, parking and public transport links, allowing for an increase in the annual number of flights departing from the airport and an increase in the total annual passenger capacity from 10 million to 12 million passengers per annum. The expansion will generate a significant number of new jobs both regionally and at the airport.
Daniel Austin, CEO and Co-Founder at ASK said: “We were delighted to work with Arc & Co. on this transaction to provide Ability Group with the funding required to expand this successfully operated hotel, managed by a well-known brand, in line with the airport’s growth plans.
“The proposed build, in keeping with the original construction will extend the hotel without disrupting the hotel’s ongoing operations. Bristol Airport is the UK’s 8th largest airport, servicing commuters from the South West England and Wales.
“With the increase in travel and terminal side hotel demand post-Covid, coupled with the Bristol airport expansion plans, we felt this was a strong business proposition that we were happy to underwrite.”
Ed Horn-Smith, Managing Director of Arc & Co. said: “Situations such as this, featuring not only the refinancing of an existing facility but also providing development finance to extend a high-performing asset, demand a lender with a firm understanding of the underlying fundamentals and the flexibility to provide a bespoke solution.
“ASK Partners has a strong track record on deals such as this, and it is fantastic to reach a position that works for all parties. We look forward to working with both Ability Group and ASK Partners on future projects.”