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Singapore hotel group ProsperCap Corporation has announced that it has secured a £310m refinancing of its UK portfolio.
Arranged by Deutsche Bank AG London Branch and Standard Chartered Bank, the new facilities comprise a term loan facility of up to £296.04m and a CAPEX loan facility of up to £13.96m, both with an initial tenure of 24 months and three (3) extension options of 12 months each.
The new loan facilities were timely as the UK, where all the group’s properties are located, is experiencing robust domestic demand, combined with ongoing tourism recovery from overseas.
Additionally, increased demand for meetings and events has contributed to improvements in Revenue Per Available Room (“RevPAR”) and Average Daily Rate (“ADR”).
For the half year ended 30 June 2024 (“1H2024”), the group recorded a year-on-year increase of 1.3% and 3.1% in RevPAR and ADR to £76.41 and £99.90 from £75.44 and £96.85 respectively.
The proceeds from the term and CAPEX facilities 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.
The group currently has a portfolio of 17 predominantly upscale hotels across key regional cities in the UK under international hotel brands of Hilton, IHG and Marriott.
Surawat Suwanyangyuen, chief financial officer of ProsperCap, said: “We are pleased to partner with globally reputable financial institutions such as Deutsche Bank and Standard Chartered Bank and secure 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, CEO and executive director of ProsperCap, added: “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.”
