Arc & Co. Arranges £8M Loan for 553-Bed Hotel Development in Liverpool

Arc & Co. advised on an £8m loan for a hotel operator in the North West.

The funding will support the initial stages of a 553-bed hotel development in Liverpool. 

The specialist debt advisory secured the net loan of £8m against the residual value of the business plan, and the initial works will be followed by extensive refurbishment. 

Planning consent has been granted to convert a part-vacant, eight-storey office and retail building into a 125-suite hotel.

Once trading, the hotel is expected to have a projected value of over £30m, with the building currently valued at £13m. 

“This was a very interesting transaction given the intuitive response by my clients to reposition this asset,” said Charlie Armstrong, asset finance adviser at Arc & Co (pictured top). 

“Securing a leveraged position against the residual value of this consent shows that there are solutions to the evolving nature of the tertiary office/retail market. 

“Ultimately, it comes down to the strength of the business plan, so kudos to my clients for their delivery of this opportunity.”

Charlie Armstrong
Asset Finance Advisor
Structured Finance

Office: +44 (0) 20 3205 2127
Mobile: +44 (0) 771 705 4937
Email: charlie@arcandco.com