Hilco Real Estate Finance has completed a £12m bridging loan on a 178-bedroom hotel near Heathrow Airport in just over three weeks, enabling the borrower to refinance the asset and implement a new operational strategy.
The 18-month loan will provide the sponsor with the breathing room to reposition the hotel as it transitions from a long-standing government contract to trading under a globally recognised hospitality brand. A programme of capital investment is currently underway, with the rebrand forming part of a broader effort to increase customer appeal in the highly competitive Heathrow hotel market.
Valuation advice for the transaction was provided by Cushman & Wakefield, while legal support came from Trowers & Hamlin in London.
Sean Adams (pictured), managing director of Hilco Real Estate Finance (HREF), said: “We are delighted to have completed another hotel loan, this time in the highly attractive Heathrow market. This is the fourth hotel loan completion for HREF over the last 12 months and we see this as a sector where we can add real value, particularly to assets being transitioned between owners and between different brands.
“The sponsor in this case has a strong track record, and the asset is well positioned to take advantage of the growing market at the UK’s largest airport.”
The Heathrow deal follows a flurry of lending activity for HREF. Just two weeks earlier, the lender completed a £24m transaction backing a West Midlands investor’s acquisition of two residential blocks. In February, HREF deployed £44m across several loans.
Launched in 2023, HREF provides tailored short-term finance for acquisitions, development exits and refinancing exits, with loan sizes ranging from £3m to over £150m. Its services span multiple sectors and capital structures across the UK and Ireland.
HREF is a subsidiary of the US-headquartered financial services group Hilco Global, which has more than $5bn in assets under management.
