Property firm lands £24.6m to fund airport hotel plans

A property firm has landed a £24.6m loan to pay for an upgrade of a hotel close to Bristol Airport.

Ability Group has secured the loan against the Bristol Airport Hampton by Hilton Hotel.

The property group, which owns the leasehold, has secured the loan from ASK Partners.

The deal will replace existing financing and will fund a proposed extension of the hotel, adding 50 new bedrooms to the existing 201.

Daniel Austin, chief executive and co-founder at ASK said: “We were delighted to provide Ability Group with the funding required to expand this successfully operated hotel, managed by a well-known brand, in line with the airport’s growth plans.

“The proposed build, in keeping with the original construction will extend the hotel without disrupting the hotel’s on-going operations.”

Bristol Airport is the UK’s 8th largest airport, servicing commuters from across the South West and Wales.

Austin added: “With the increase in travel and terminal side hotel demand post-Covid, coupled with the Bristol airport expansion plans, we felt this was a strong business proposition that we were happy to underwrite.”

Ability Group, which owns the long leasehold on the property, was advised by asset finance advisers Arc & Co.

Ed Horn-Smith, managing director at Arc & Co, added: “Situations such as this, featuring not only the refinancing of an existing facility but also providing development finance to extend a high performing asset, demand a lender with a firm understanding of the underlying fundamentals and the flexibility to provide a bespoke solution.

“ASK Partners has a strong track record on deals such as this, and it is fantastic to reach a position that works for all parties. We look forward to working with both Ability Group and ASK Partners on future projects.”