Macdonald Hotels eyes refinancing deal

Hotel News - 24/12/2012

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Scottish hotel firm Macdonald Hotels is reportedly amid negotiations for a fresh refinancing deal.

Reports said on Monday that officials from the Bathgate-based firm are looking to secure a £314 million debt facility with Lloyds Bank, with an expiration date slated for the autumn. Officials from the firm have confirmed negotiations are underway but said that Lloyds is not looking to sell-off its 50 per cent stake in the hotel group.

Gordon Fraser, Macdonald Hotels’ finance director, told reporters from The Herald newspaper that a deal could be finalised as early as Tuesday, although added that the primary objective was to strike the best deal possible.

The news comes after official figures revealed pre-tax profits of £1.9 million for the group in the year leading up to 1 March, following the £5.3 million loss seen in the same period one year prior.

Macdonald Hotels invested some £8 million into growth last year whilst maintaining debt payments. Now, officials say that the company is looking for additional funds to put toward substantial property upgrades. However, the firm’s chief executive David Guile told the media that the company was preparing for another year of “very tough” market conditions.

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