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UK: Art deco property Burgh Island Hotel, located off Devon’s coast, has withdrawn from the market after securing £5.4 refinancing from Metro Bank.
The financing will support the hotel’s refurbishment and further its sustainability commitments. This will include enhancements to the hotel’s décor, preserving its collection of art deco antiques and architectural features, as well as its original Crittall windows.
Burgh Island Hotel has recently completed water treatment works and currently, a new front roof is expected to be finished by late September. Other ongoing upgrades include the reinforcement of sea defences to prevent cliff erosion, along with additional cladding and repainting.
The hotel will also incorporate renewable energy heating where possible, including solar water and ground source heating, supporting its existing solar panels.
The refinancing comes as Burgh Island Hotel is withdrawn from the market, which went up for sale last year at £15 million.
Giles Fuchs, owner of Burgh Island Hotel, said: “I am delighted to announce that I will be continuing as the owner of Burgh Island. 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: “We are very pleased to support the Burgh Island Hotel’s drive to further enhance its proposition, services, and sustainability. It is already recognised as one of the world’s most admired hotels and is highly valued by its guests. Its location, exceptional services and unparalleled quality make it a unique establishment, but with its own challenges too, which this refinancing will help the owners address. Supporting the hotel is in line with our ambition to support leisure and hospitality businesses in fulfilling their growth potential and achieving their strategic goals.”
Burgh Island Hotel was exclusively advised by Westfort Advisors.
Richard Herring, co-founder of Westfort Advisors, added: “It was a pleasure supporting Giles in securing funding for such a beautiful and unique property. As such, it’s generally less exposed to regional changes in hotel supply and demand and is a proven inflation hedge, having maintained strong seasonal occupancy and ADR growth – offsetting cost increases seen across the sector. 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.”
