The three-year senior commercial loan — secured against the hotel itself — has been provided on an interest-only basis.

Located opposite the main terminal building at Edinburgh Airport, the Hampton by Hilton was constructed in 2018 and if planning consent is secured, OakNorth Bank will provide the development facility for the works.

The borrower Ability Hotels intends on extending the existing 240-bedroom property over a three-phased development adding an additional 380 keys in total if planning permission is approved — in which a further development facility will be provided by OakNorth.

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Ed Horn-Smith, managing director at Arc & Co, said: “The nature of this arrangement — not only of the initial facility, but also the provision of a subsequent development loan should planning permission be secured — puts a high premium on trust between all parties.

“Having secured loans from OakNorth in similar situations in the past, we knew it was the ideal funding partner for such a facility, and it is hugely pleasing to have reached a solution that works for everyone.

“We look forward to working with both the client and OakNorth on future projects.”

Damien Hughes, senior director of property finance at OakNorth, added: “We were delighted to work with both The Ability Group and Arc & Co on this transaction and look forward to working with both companies again in the future.”