Ortus lends £810,000 to start-up hotel business

Ortus Secured Finance has completed a £810,000 loan to a new start-up hotel business in Somerset.

The property – a closed 19th-century country house hotel – was set to be purchased and converted into a luxury hotel, with long-term plans to build holiday lodges and ‘glamping’ pods on the 18-acre site.

Despite the clients not having any direct experience in the hotel sector, they owned and operated a portfolio of successful care homes.

Ortus took comfort in the clients’ track record in establishing operational businesses, and they provided the specialist finance provider with a realistic and comprehensive business plan.

Ortus provided the loan on an 18-month term at 65% LTV to allow them plenty of time to deliver an exit by either selling one of their care homes or by refinancing the hotel.

Richard King, business development manager at Ortus (pictured above), said: “It’s important for us to back good people, and that doesn’t mean they have to have direct sector experience.

“Our borrowers here had a clear vision of what they wanted to achieve, and given their exemplary track record we were keen to support them.

“We added value by providing an 18-month term so that they weren’t under any undue pressure to repay.”

The case was introduced by Michael Cass, senior partnerships manager at Capitalise, who said: “The team at Ortus [has] been good to deal with, and it’s been refreshing to be able to have a direct line into genuine decision makers at every stage of the process.”

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