Property Finance Loan

Background

Operating in Ireland and the UK for over 30 years in the hospitality sector, Choice Hotel Group was taken over by Andy O’ Neill in early 2016. The company’s hospitality umbrella spans over hotel management, pubs and a coffee business. The core of the business is as a hospitality operator with 6 hotels across Ireland through ownership, lease and management. The company is a main contender in a challenging sector which is seeing significant growth.

The Choice Hotel Group were leasing Hotel Woodstock in Ennis, with a right to purchase. Recognising the strength of the asset, along with it’s growth potential, and its pivotal place in the community, the Group was eager to purchase the property to bring it under the main company and put it on their balance sheet as an owner operator property.

Challenges

The provincial location of the property meant that securing a finance partner was not straightforward. This, coupled with required sectoral knowledge of the hospitality industry, led them to Capitalflow.

Solutions

Capitalflow was delighted to get on board with Choice Hotel Group, and finance the purchase of Hotel Woodstock, Ennis. Set on the outskirts of the town, the hotel has top class facilities including a golf course and leisure centre. Capitalflow were able to support the group with expert knowledge of the hospitality sector. As this was the first lease agreement for the company under new management in 2016, there was a strong desire to own the property, provide security to local jobs and continue to add to tourism in the area.

“We knew almost immediately after meeting Shane and the Capitalflow team that they were the right people to work with. Normally you have to explain your business, especially the hospitality sector, to pillar banks but Shane had his research done, he knew what we were about, he knows the industry, he asked all the right questions. It gave us security in the knowledge that he knew our business as well as we do. Pillar banks dont have the professional support in the same way Capitalflow do, while we lean on them to borrow, we can also lean on them for support.”

Andy O’ Neill, CEO of Choice Hotel Group

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