During 2022, we supported the Scottish National Investment Bank (the Bank) on its lending package to finance Highland Coast Hotels' acquisition and upgrade of six iconic hotels in Sutherland.
This was the Bank's first corporate debt facility deal and delivers on its missions through supporting a vital industry for the Highlands, securing quality employment, educational and training opportunities in rural communities, also benefitting local businesses as part of the supply chain for a growing hospitality business. The hotels financed are at Kylesku, Newton Lodge, Brora, Dornoch, Plockton and Tongue.
Key highlights
- Working to a very tight timeline to put in place the initial refinancing of four of the acquired hotels so that significant refurbishment and upgrade work could start in time to be completed for the holiday season.
- Working with the Bank to develop its Mission Covenants and Ethical Investment Covenants to ensure the transaction was fully aligned with the Bank's strategic aims.
- Working with an enthusiastic and dedicated Bank team, including Susan Campbell, Zara Diloo, Tendai Zulu and Alastair McMillen.
- Finalising the deal by assisting with the acquisition of the fifth and sixth hotels in line with the required timescales.
We are delighted to have made this investment with Highland Coast Hotels. Thank you to the Brodies team for supporting us to deliver this so quickly and successfully. Susan Campbell, Investment Director at the Bank
Outcome
The North Coast 500 touring route is an internationally known tourist attraction, and the strengthening of the hospitality infrastructure along its route will enhance the touristic experience and bring much benefit to the local rural economy.
The Bank has made an immediate impact with this investment, and where our clients are successful, we feel great satisfaction, we feel great satisfaction at being asked to contribute.
It was a real pleasure for us to help the Bank to successfully complete its first corporate debt facility and so to support the growth of a high quality hospitality business in the Highlands. Michael Stoneham, Banking Partner at Brodies LLP
