This is an opportunity to invest in the purchase and growth of a profitable, 57 bed hotel based in Crewe. The management buy-in team sees the opportunity to grow the business by 35% in sales and 300% in profits within 5 years, and is committing £120k of its own money to the opportunity. This team have already successfully grown ‘The Royal Clifton Hotel & Spa’ in Southport by 10.5% in profit last year and is forecasting profit growth of 11% this year, with one month to go.
Alongside senior bank debt of £1.5m, a further investment of £1.08 million is sought to fund the acquisition costs, in return for which the investor will receive annual interest of a 12% coupon, and in addition will take a 60% share of the profits on exit in 5 years. A portion of the interest will be paid from month 13 at a rate to be agreed.