FRP Real Estate Advisory has arranged a £10m term loan to refinance three Grade II listed townhouse hotels near King’s Cross in London.
The 65% LTV facility has been agreed over a five-year term and replaces an existing capital expenditure loan used to fund the refurbishment of the properties in Argyle Square, Bloomsbury.
The hotels have recently undergone a substantial refurbishment to create a boutique, affordable luxury offering, but had limited post-refurbishment trading history when the refinancing was arranged.
FRP secured a lender prepared to underwrite the portfolio on the basis of forecast income rather than requiring an established record of occupancy and revenue.
The transaction was led by Philip Kay, director at FRP Real Estate Advisory, who also arranged the original capital expenditure facility for the refurbishment. The client subsequently returned to FRP for the refinancing.
The properties are close to King’s Cross station, with access to the Eurostar terminal at St Pancras and the wider King’s Cross regeneration area.
The deal comes as investment activity in the UK hotel sector has increased. UK hotel investment reached £2.1 billion in the first half of 2026, around £500 million higher than during the same period last year, with London accounting for the majority of activity, according to Savills.
Kay (pictured) says: “What made this deal work was finding a lender who was prepared to underwrite where this business was heading, not just where it stood on day one.
“There was very little trading history to point to since the capex programme finished, but the lender understood the product, backed the forecast income, and gave us a five-year term that means the client isn’t back at the table again in 12 months’ time.
“This is exactly the kind of outcome we want for our hospitality clients right now. London’s hotel market keeps proving its resilience to investors and lenders alike, and deals like this show that well-positioned, well-run assets can access serious long-term capital even without years of trading data behind them.
“It’s a strong marker for what boutique, affordable luxury operators in this part of London can achieve.”
