UK: Fund manager Castleforge has bought the Abbey Hotel, a Marriott Tribute Portfolio Hotel, along with two adjoining buildings in the centre of Bath.
CBRE advised Castleforge on the financing of its purchase of the hotel and two adjacent sites. The financing, provided by Virgin Money, will also be used to refurbish the property.
Marking the fourth acquisition by Castleforge in the last 12 months, Axiom Hospitality has been appointed to manage all four assets.
Matt Lederer, hotel acquisitions director at Castleforge, said: “We are pleased to have completed this financing with Virgin Money. They have provided attractive terms which reflect our assessment of the asset’s strong fundamentals and further potential, hereby supporting our continued expansion in the UK hotel market.”
Neil Harley, senior director of hotel finance at Virgin Money, said: “The Abbey Hotel Bath is a tremendous asset located in the heart of one of regional UK’s strongest hotel markets. The combination of the sponsor and Axiom Hospitality’s expertise with the added value of the recent rebranding represent an exciting project we are looking forward to supporting.”
Stephanie Muller, associate director of debt and structured finance at CBRE, said: “We are delighted to have secured this financing on behalf of Castleforge for their latest milestone hotel acquisition. This transaction further demonstrates the eagerness from lenders to support established sponsors when investing in strategic assets with strong fundamentals.”
Castleforge Partners were advised by Taylor Wessing LLP and Clydesdale Bank by Burness Paull LLP.