Modern finance meets history business operation as Glen Rothay Hotel enlists Crowd2Fund to raise capital for expansion and improvement of existing facilities. Glen Rothay, and associated Badger Bar, is a hotel located in the lake district that dates back to 1624. The landmark property is a traditional inn that is said to attract both hikers and foodies. A quick glance at TripAdvisor shows numerous reviews lauding the cuisine and country appeal. Glen Rothay is using a new twist on crowdfunding as they are leveraging what may be the first UK “revenue loan” to raise capital.
The hotel is raising £40,000 at an annual rate of 10% for an expected term of 24 months. The loan is described as having investors offered 10% annual interest gross of taxes and fees and paid monthly, using Crowd2Fund’s revenue lending product. This means the business will remit 8% of monthly turnover (at least 1.1x the monthly interest accrued) until the debt and interest are fully paid, with the expectation of being repaid within 2 years of drawing.
The hotel was recently purchased by Paul Knowles and Eleanor Knowles with the intent on making it a destination small county house hotel and inn. The property is described as having “fabulous character” that is just in need of some “TLC”. The new owners have chosen Crowd2Fund’s revenue loan as financing solution due to it being flexible and allowing them to retain ownership.
“The Crowd2Fund revenue loan will allow us to access finance without needing to release equity. Paying investors better returns with the revenue loan will give us greater flexibility, which is perfect for our business model. In addition, Crowd2Fund has a track record of successfully raising finance for hospitality companies.”said Paul Knowles.
The new funds will be used for refurbishing bedrooms and increasing the focus on the hotel’s restaurant facilities.
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