Burgh Island Hotel, the iconic art deco hotel in Devon that inspired two of Agatha Christie’s famous works, has been pulled from sale following a successful refinancing.
The Grade II listed hotel had been put up for sale with a £15m price tag. However, the completion of a £5.4m refinancing and additional funding package led by Metro Bank has seen the sale pulled.
The hotel is owned by Giles Fuchs.
The finance will be used to refurbish the hotel, upgrading its infrastructure and improving its sustainability. This will include enhancements to the hotel’s decor, preserving its large collection of art deco antiques and architectural features, as well as its original Crittall windows.
Fuchs said: “The refinancing agreed with Metro Bank will facilitate further investments in the hotel and enhance its infrastructure, services and beauty while maintaining its art deco authenticity and commitment to sustainability.”
Nicholas Kalamaras, head of hospitality and leisure at Metro Bank, said the funding agreement was in line with Metro’s ambition to support leisure and hospitality businesses in fulfilling their growth potential and achieving their strategic goals.
Richard Herring, co-founder of Westfort Advisors, which acted for Fuchs, said the new debt meant that the hotel was now less exposed to regional changes in hotel supply and demand.
“The owners are well-capitalised and their focus on restoration and sustainability will promote long-term value growth. That said, procuring debt was not plain sailing, given general market challenges in underwriting operational risk for owner-occupied hotels. Working alongside Metro Bank, though, we were able to deliver a full refinancing package, plus all immediate capex funding to support the hotel’s long-term business plan.”
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