London: 16 May 2023
LQ Securitisation SV (LQ SV) advised by Lodge Quai Advisors LLP (LQ) announces the repayment of a short-term working capital loan provided to BLOC Hotels (BLOC).
BLOC is a leading limited-service hotel operator in the UK with standing hotels at Gatwick Airport and Birmingham Jury Quarter. BLOC also owns freehold assets in Glasgow and in Birmingham which were acquired for development purposes just prior to COVID. As a result of COVID, the operating hotels were closed. For working capital needs to be adequately reserved and to provide for the re-opening of the hotels post COVID, a short-term working capital facility (Loan) was provided. The Loan was provided on a less than 50% loan to value basis.
BLOC re-opened the hotels post-COVID and trading has been well ahead of pre-COVID performance, driven by an increase in room rates.
The Loan paid interest current and has been repaid in full.