Refinancing project announced for South Devon island

Burgh Island Hotel, the iconic art deco hotel with links to Agatha Christie, has announced the successful completion of a £5.4 million refinancing and additional funding package led by Metro Bank. This is a significant step towards ensuring the Hotel retains its authentic appeal, while further enhancing its features and services to ensure guests have the best possible experience.

This funding comes a week after the iconic south Devon island was taken off the market, having been put up for sale in May for £15 million.

The financing will support the Hotel’s refurbishment, upgrading its infrastructure while further improving its sustainability commitments. This will include enhancements to the Hotel’s décor, preserving its large collection of art deco antiques and architectural features, as well as its original Crittall windows.

Inspiring Agatha Christie’s best-selling novel Evil Under the Sun featuring Hercule Poirot, the hotel has been a popular escape for celebrities and visitors seeking glamour and seclusion for nearly a century.

It’s rumoured President Eisenhower and Prime Minister Winston Churchill met at the hotel before D-Day, while the Duke of Windsor and Wallace Simpson reportedly visited. The Beatles stayed in the hotel before playing a concert in Plymouth.

The Hotel has also confirmed the completion of brand-new water treatment works and a new front roof, which is expected to be finished by late September. Other ongoing upgrades include the reinforcement of sea defences to prevent cliff erosion, along with additional cladding and repainting to protect the Island’s infrastructure for the future.

All new building elements will prioritise energy efficiency, taking a fabric-first approach and utilising heat recovery ventilation. The Hotel will also incorporate renewable energy heating where possible, including solar water and ground source heating, supporting its existing solar panel array.

This refurbishment follows last year’s completion of a new £3 million state-of-the-art accommodation for employees on the mainland, as well as renovations to the Chirgwin staff rooms, underscoring Burgh’s dedication to its employees and the local community.

Giles Fuchs, owner of Burgh Island, said that the new refinancing agreement would help him to accelerate the improvements" and "continue the journey to make it fit for the next 100 years".

He continued: “I am delighted to announce that I will be continuing as the owner of Burgh Island. The refinancing agreed with Metro Bank will facilitate further investments in the Hotel and enhance its infrastructure, services and beauty while maintaining its art deco authenticity and commitment to sustainability.”

Nicholas Kalamaras, Head of Hospitality and Leisure at Metro Bank, said: “We are very pleased to support the Burgh Island Hotel’s drive to further enhance its proposition, services, and sustainability. It is already recognised as one of the world’s most admired hotels and is highly valued by its guests. Its location, exceptional services and unparalleled quality make it a unique establishment, but with its own challenges too, which this refinancing will help the owners address. Supporting the Hotel is in line with our ambition to support leisure and hospitality businesses in fulfilling their growth potential and achieving their strategic goals.”

Richard Herring, Co-founder of Westfort Advisors, said: “It was a pleasure supporting Giles in securing funding for such a beautiful and unique property. As such, it’s generally less exposed to regional changes in hotel supply and demand and is a proven inflation hedge, having maintained strong seasonal occupancy and ADR growth - offsetting cost increases seen across the sector. The owners are well-capitalised and their focus on restoration and sustainability will promote long-term value growth.

“That said, procuring debt was not plain sailing, given general market challenges in underwriting operational risk for owner-occupied hotels. Working alongside Metro Bank, though, we were able to deliver a full refinancing package, plus all immediate CapEx funding to support the hotel’s long-term business plan.”