Singaporean hotel owner ProsperCap has secured a £310m refinancing of its UK hotel portfolio.
The group, backed by DTGO Corporation, has a portfolio of 17 hotels across key regional cities including Birmingham, Manchester, Nottingham, Leeds and Bristol. Each is under the international hotel brands of either Hilton, IHG, and Marriott.
The portfolio includes the Hilton Garden Inn in Bristol and the Crowne Plaza hotel in Plymouth.
Arranged by Deutsche Bank and Standard Chartered Bank, the new facilities comprise a term loan of up to £296.04m and a CAPEX loan facility of up to £13.96m. The proceeds will be used to refinance the group’s existing facilities, pay for transaction costs, budgeted capital expenditure, and general corporate purposes such as working capital requirements.
ProsperCap says its UK properties are experiencing a robust demand coupled with an ongoing tourism recovery from overseas.
An increased demand for meetings and events has also contributed to improvements in Revenue Per Available Room (RevPAR) and Average Daily Rate (ADR).
For the half year ended 30 June 2024, ProsperCap recorded a year-on-year increase of 1.3% and 3.1% in RevPAR and its ADR grew to £76.41 and £99.90 from £75.44 and £96.85 respectively.
Chief Financial Officer of ProsperCap, Mr Surawat Suwanyangyuen said: “We are pleased to partner with globally reputable financial institutions such as Deutsche Bank and Standard Chartered Bank and securing the term loan facilities for our performing UK hospitality portfolio. With their support, ProsperCap strengthens its financial stability allowing us to lay the foundation for long-term prudent capital management.”
Iqbal Jumabhoy, Chief Executive Officer and Executive Director of ProsperCap said: “With the new committed credit facilities, the Group is now able to capitalise on opportunities made available by the current market momentum.
“Resources will be allocated to continue with our property improvement plans as agreed with our franchisors, as well as capacity expansion and room refurbishment to sustain hotel competitiveness and to meet the evolving expectations of our guests.”
