FRP Real Estate Advisory has arranged a £10m loan to refinance three Grade II-listed townhouse hotels in Argyle Square, Bloomsbury. The new loan replaces an existing loan to fund improvements to the properties, which have been recently refurbished into boutique hotels offering affordable luxury.

The five-year loan was structured at 65% loan-to-value to support the portfolio during its early stabilisation period, when it had limited trading history following the refurbishment.

Rather than waiting for occupancy and revenue figures to build, FRP secured a lender willing to base the loan on the portfolio’s expected income and business plan.

The transaction was led by Philip Kay, director at FRP Real Estate Advisory, who also arranged the original funding for the portfolio’s refurbishment, as the client reappointed him to handle the refinancing.

The hotels are located close to Kings Cross station and the Eurostar terminal, with easy access to the wider Kings Cross regeneration area. The location offers strong transport links and supports the portfolio’s appeal as a boutique hospitality asset.

The deal comes as investment in the UK hotel sector continues to grow. According to Savills, hotel investment reached £2.1bn in the first half of 2026, around £500m higher than the same period last year, with London accounting for most of the activity.

Savills’s latest UK Hotels report says strong demand, limited new development and the right type of hotel will be important for success in the coming years. It also highlights the growing importance of active management and strong operations in generating returns.

Philip Kay, Director at FRP Real Estate Advisory, said: “What made this deal work was finding a lender who was prepared to underwrite where this business was heading, not just where it stood on day one. There was very little trading history to point to since the capex programme finished, but the lender understood the product, backed the forecast income and gave us a five-year term that means the client isn’t back at the table again in 12 months’ time.

“This is exactly the kind of outcome we want for our hospitality clients right now. London’s hotel market keeps proving its resilience to investors and lenders alike, and deals like this show that well-positioned, well-run assets can access serious long-term capital even without years of trading data behind them. It’s a strong marker for what boutique, affordable luxury operators in this part of London can achieve.”

Kay exclusively told Hotel Owner: “The key was to identify a lender who knew the micro-location very well and was able to underwrite forecast ADRs within the context of the post-capex product. We also spent time getting the lender comfortable with short- and medium-term stabilisation by showing very recent actual trading in combination with actual bookings.”