‘Agatha Christie hotel’ taken off the market after owner secures funding
Burgh Island hotel in Devon has been taken off the market after securing £5.4m in refinancing and additional funding from Metro Bank.
The art deco hotel, which is situated on a private island and inspired Agatha Christie’s novel Evil Under the Sun, was put on the market for £15m last May.
Funding will be used to refurbish the 25-room hotel, upgrade its infrastructure and support its sustainability drive.
It comes after £3m staff accommodation on the mainland was completed last year in response to a shortage of housing for hospitality workers in the south west of England.
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.”
Richard Herring, co-founder of Westfort Advisors, said: “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.”
