Editor's note: This brief was summarised by The Property AI Newsroom from a report by PropertyWire. Read the original article for full details.

Atom bank provides £2.35m loan for Mayfair hotel reopening

Atom bank has funded a £2.35 million commercial mortgage to support the reopening of a hotel in Mayfair, London. The hotel had been closed for more than five years following the Covid-19 pandemic.

The deal was arranged by Gindy Mathoon, senior mortgage and protection adviser at broker Create Finance, with legal work completed by Kimberly Crossman, commercial property solicitor at Square One Law. According to the report, the transaction faced significant challenges, with around nine lenders rejecting the application before Atom bank agreed to proceed. Lenders cited concerns about the hotel sector and the borrowers’ limited experience in the industry as reasons for declining the deal.

Atom bank conducted extensive due diligence before structuring a deal that enabled the hotel to resume operations. The hotel is now operational following completion of the financing arrangement.

This transaction adds to recent commercial property financing activity, including deals in the development finance sector and refinancing of multi-unit blocks.

The case highlights ongoing lending challenges in the hospitality sector, which may be relevant for letting agents and inventory clerks monitoring commercial property trends in London and the wider UK market.