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Room for improvement: hotel secures arrangement fee-free lending
Sometimes, the key to a good deal is treating a business like they’re already a client. It’s exactly what happened when South Lawn Hotel, a business that multi-banked with the competition, approached us via their intermediary to see if we could help them diversify their business and switch their banking to us.
Read time: 3 mins Added: 01/08/25
South Lawn Hotel is a well-established operator in the New Forest. After due consideration and much number crunching, they realised that to stay relevant and improve profitability they needed to diversify. They took the bold decision to withdraw from the busy wedding market and to refurbish the function room into self-contained suites of one, two and three bedrooms with kitchenettes, lounges and private terraces.
Through their long-established relationship with Sedulo Accountants Ltd, acting as their Professional Adviser, they looked to Lloyds for funding to facilitate the change and to attract a broader mix of guests to include those looking for a more superior self-contained accommodation with the added advantage of the hotel's facilities and service.
An early review of the hotel’s Energy Performance Certificate meant we were able to suggest a Buildings Transition Loan, offering a 0% arrangement fee for that part of the funding. Combining this with a five-year part amortising loan meant that they were able to refinance the hotel at highly competitive rates.
People Power
Although they had other parties interested, and apart from our willingness to embrace the strategic move itself, it was the fact that we treated them as if they were an established client from the get-go that helped the final decision. To demonstrate our overall commitment to the deal, they met with their now Relationship Director Will Gage, and our Business Development Director Darren Riley at the very beginning, helping to build trust, empathy, and really get to know their business.
This approach to a relationship meant we had the confidence to also increase their facility prior to the final signature to help them refurbish further parts of the hotel that were connected to the planned new rooms, therefore maintaining a consistent first impression with visiting customers.
Tim Wedgwood S L Hotel LtdI very much appreciate the support from Darren with those increases in facility and can assure you that I am very happy with where this has ended up, and I am looking forward to a great working relationship with Lloyds.
The Broker connection
Of course, none of this would have been possible without the faith and foresight shown from their panel introducer. It’s that connection that allowed us to review the lending from a different perspective, offering a solution that would work in the longer-term.
Ian Morgan Sedulo Accountants LtdI am happy that we have found a solution that fits not only my client’s financial needs but also, in Will I feel very comfortable that we have found someone to work with on a day-to-day basis and who will provide the support Tim and his business deserves.
In the end, although it’s not unusual for the shape of a deal to change or develop during the process, our dedication in forming a strong understanding with the hotel from the start resulted in an ambitious business securing the funds they needed to cater for a changing market. Following the success of this deal, and with their main trading account now with us, Tim and his team are now considering further land and hotel opportunities, continuing to improve on the established foundation of a connected relationship.
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