321% ROI - Part built Hotel to Finished Project

COMPLEXITY SCORE: 10/10

THE CHALLENGE

A developer approached us with a part-finished hotel offering a clear opportunity: acquire for £1.3M, invest a further £1.3M to complete it to a luxury specification, and refinance into a rent-producing asset. With a RICS surveyor valuing the completed property at £3.8M, the opportunity was compelling. The challenge was structuring enough finance while keeping the client's capital requirement to a minimum.

THE COMPLEXITY

• £2.6M total project cost

• Part-finished hotel requiring substantial completion works

• £1.3M development budget for high-end finishes

• £3.8M projected completed valuation

• Required a significant first-charge facility without over-leveraging the project

  
  

THE STRUCTURE

£2.3M First-Charge Facility↓£300K Client Equity↓£1.3M Development WorksLuxury bathrooms • Bespoke joinery • Boutique-standard rooms↓

£3.8M COMPLETED VALUE

Finance: 0.85% per month12-Month Interest: £234,600

THE RESULT

Always Wright structured a £2.3M first-charge facility, meaning the developer needed just £300K of their own capital to deliver a £2.6M project. The development was completed to a premium specification designed to support both rental demand and the underlying valuation.

At a £3.8M completed value, the project generated £1.2M gross profit before finance and approximately £965,400 after 12 months' interest, producing an estimated 321.8% return on the client's £300K investment.

The result? A fully completed, rent-producing hotel — delivered with just £300K of client capital.

KINGS OF COMPLEX

£300K in. £3.8M asset. £965K net profit after interest.

Complex deal. Simple outcome.