Gatwick: RBS team funds Scragg Hotels
The Royal Bank of Scotland Gatwick Corporate Banking Team has provided a sizable funding package including working capital facility to Scragg Hotels, to support the business in acquiring The Spa Hotel, Tunbridge Wells.
Scragg Hotels is the new vehicle of Chris Scragg, the Kent-born hotelier who was chairman, managing director and significant shareholder of Marston Hotels until its sale last year. The acquisition of The Spa Hotel represents the first step in Scragg’s latest venture, following the highly successful years developing, running and then selling Marston.
The Spa Hotel is a 69-room hotel set in 14 acres of grounds on the outskirts of Tunbridge Wells. The hotel dates back to 1880 and since 1966 has been in the ownership of the Goring Family. The hotel boasts a fully equipped spa, plus an array of other leisure and dining facilities as well as one of the largest function venues in the locality. Chris Scragg is planning a substantial refurbishment programme, which will see the hotel reinforce its position as one of the best all round 4-star hotels in the area.
Scragg worked closely with David Addenbrooke, director of Business Development from the RBS corporate banking team in Gatwick, who put the financial solution in place.
South East law firm Thomas Eggar LLP provided legal advice for the transaction and the Savills Commercial hotels team on the property related matters, including valuation.
Scragg commented: “I am delighted with the purchase of The Spa Hotel and am grateful to David and the RBS team for putting the financial solution in place. We know RBS well from the years that they were bankers to Marston Hotels and they impressed us with their highly competitive terms and hotel sector knowledge. The process of arranging the finance through to completion of the transaction was remarkably smooth.”
Addenbrooke, director of Business Development, who led the RBS team, commented: "We are absolutely delighted to continue our longstanding relationship with Chris Scragg and members of the Marston Family. Chris has a first class record of developing, refurbishing and operating provincial four-star hotels and we have no doubt that the Spa Hotel will enjoy significant success under the stewardship of Scragg Hotels.”
