Fiduciam loan enables Carbis Bay hotel to recommence trading in time for G7
Fiduciam has granted a £7.5 million loan to enable the Treloyhan Manor Hotel in Carbis Bay to resume trading in advance of the G7 and be extensively upgraded. The loan had to cater for both the recommencement of trading and the upgrade of the building.
It took Fiduciam only six weeks to grant the loan, despite a highly complex planning and title situation. Fiduciam had to complete its loan within one week from exchange of contracts, as the hotel is going to be used for housing G7 police forces.
Methodist Guild Holidays Ltd, the hotel’s owner that had been trading since 1927, went into administration in March of last year. Due to the Covid pandemic and complex title and planning issues it took over a year to find a new operator. Treloyhan Manor was built in 1892 by a Cornish shipping magnate and has splendid views over Carbis Bay. It had fallen into disrepair over the years and the loan allows for an internal refurbishment of the property so that it can be brought back to its former glory, creating jobs for the local community.
Fiduciam is an active lender in the hotel sector, with its typical hotel loan product catering for the refurbishment and upgrade of older and often historic hotel buildings. Fiduciam continued to stand by the hotel sector during the pandemic, granting nearly £20 million of loans to several hotels to help them cope with the lockdowns. Whilst often housed in beautiful buildings in fantastic locations, many of the smaller, family-owned hotels in the UK do not always have the means to invest in the necessary upgrades to remain relevant in a rapidly changing tourism landscape. Fiduciam’s hotel loan product has proven to be a successful solution for such transformations, as it has been the case of Treloyhan Manor.
With the G7 taking place on 11-13 June 2021, there was a very hard deadline to get the loan closed so that Treloyhan Manor can recommence trading and house the G7 police forces. Thanks to close co-ordination between the lawyers of the different parties, local stakeholders, the new owner and Fiduciam, this tight deadline could be met.
Johan Groothaert, CEO of Fiduciam said: “Treloyhan Manor is an absolutely splendid building in a stunning location. It needs substantial investment though, as it has fallen into disrepair over the years. This situation is reflective of many other hotels in the UK, and we are here to help to finance their upgrades and transformations to meet the expectations of today’s tourists and travellers.
“We are glad we got this complex financing done in a short period of time with the G7 deadline looming over us. Cornwall has some of Europe’s finest beaches and coastal landscapes, and the staycations have allowed so many more people to appreciate this. We are glad that our loan will allow Treloyhan Manor to be upgraded and to welcome many tourists in years to come.”
Published: 03 June 2021