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A £13.2m deal to refinance a development facility for the 150-bed Hampton by Hilton – High Wycombe has been agreed between Leumi UK and Handy Cross Dev Co Ltd.
Handy Cross Dev Co Ltd is a joint venture majority owned by the Jaffer family, who are experienced hotel owners, the shareholders of Legacy Hotels and Resorts, and managers of the hotel.
The newly-developed, purpose-built hotel opened in June 2021 and is situated outside High Wycombe in Buckinghamshire.
It features 150 beds over five floors, and is situated within the wider Handy Cross Hub development, which currently contains a Waitrose supermarket, a leisure centre, a day nursery and is soon to welcome a new Porsche and Bentley dealership.
Leumi UK said the deal reflects its “relationship-driven approach and detailed knowledge of the hotel sector”.
It added: “Spurred by increasing domestic demand, internationally branded select service hotels such as the Hampton by Hilton in High Wycombe are better placed to recover trading than full-service hotels in prime city centre locations.”
Stephen Welch, senior relationship manager, Hotel Finance at Leumi UK said: “The long-term fundamentals of the hotel market are promising, but certain assets such as select service hotels with well-connected transport links have shown their resilience and are recovering faster than others.
“The strong initial performance of this particular hotel is a great example of this fact. Moreover, Leumi UK’s relationship-driven approach to deal-making and detailed knowledge of the hotel sector were instrumental in agreeing the deal, and is testament to the dedicated work of the hotel finance team.”
Haider Jaffer at Handy Cross Dev Co said: “We are thrilled to have agreed this refinancing deal with Leumi UK, which shares our conviction that the Hampton by Hilton hotel outside High Wycombe will continue to perform strongly in a quickly recovering market.
“Our lean rooms-led operating model has proven a success since the hotel’s opening in June, and we’re confident this performance will only improve.”
Addleshaw Goddard acted as legal advisors to Leumi UK and Colliers provided valuation advice to the bank.
Ben Brown, director of Hotels Valuation at Colliers said: “The Hampton by Hilton hotel is a prime example of a high-quality newly-constructed branded asset that is positioned to take full advantage of the recent and anticipated improvements in the hotel market. We expect continued strong performance from this site, which is reflected in our valuation report.”
