Future of hotel secured thanks to multi-million pound deal

Hotel nestles in the Peak District

A couple who were forced to close the doors at their fine dining restaurant in Manchester have secured a multi-million pound refinancing package for their country house hotel.

Restructuring firm Duff & Phelps worked on the deal which has safeguarded the future of Losehill House Hotel & Spa in Derbyshire.

Paul and Kathryn Roden were forced to close the doors of Grafene in King Street, Manchester, less than three years after it opened.

The couple made a £1m investment in the 5,750 sq ft venue ahead of its opening in 2016.

And now they have secured funding from Allied Irish Bank which will see the fine dining concept moved to Losehill.

The funding will support the ongoing investment in the hotel and help the management to make Losehill one of the best country house hotels in the country.

The terms of the deal are not being made public.

Paul Smith, managing director, Duff & Phelps Debt Advisory, said: “We are delighted to have supported the management team at Losehill Hotel through the refinance process and to have delivered another successful outcome to a business in the hotel sector.

“We were pleased to take such an instrumental role in bringing together all the parties in this deal to deliver the best possible outcome.”

Paul Roden said: “The hotel has built up an enviable reputation over the years and to have recently secured the Sunday Times award is a testament to the passion and commitment of all our team who work at the hotel.

“We have a lot to be proud of and have some very exciting plans afoot as we move to bring the Grafene’s refined take on British eating to the hotel.

“The refinance deal led by the team at Duff & Phelps comes at a perfect time and we are happy to be working with a finance partner who understands our business and future aspirations.

“The deal backs our ongoing investment strategy and we have been very happy with how helpful and supportive Paul Smith and the team have been.”

Paul and Kathryn Roden have owned the four star Losehill House since 2007, having established it as the finest boutique hotel in the heart of the Peak District National Park.

When Grafene closed last month Paul Roden blamed “uncertain times and a difficult market”.

He said: “If you’re at the fine dining end of the market, you’re an optional luxury spend.

“You don’t have to go out and enjoy a seven course taster menu to survive.”

The King Street site will be sold to another operator who is planning to open a high-end gastropub.

Allied Irish Bank was represented by relationship manager David Booth, who was introduced to Paul and Kathryn Roden by Paul Smith.

The refinance package has been structured to support the continued investment plans for the hotel.

David Booth at the Allied Irish Bank said: “I am delighted to be helping such a quality management team.

“Paul and Kathryn are very experienced and have ambitions to make Losehill House Hotel & Spa the best country house hotel in the country.

“This is a fantastic achievement and we are excited to be supporting them with their future aspirations and structure a funding package that assists their ongoing strategy.”

 

 

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