Lantern Lodge Hotel, based in Hope Cove, Devon, will be replaced by 14 new modern apartments by Trinity Square Developments.
Specialist development finance lender Shawbrook Bank is funding a £3.3m redevelopment project that will see a hotel on the South Devon coast converted into modern 'staycation' apartments.
Lantern Lodge Hotel, based in Hope Cove, Devon, will be replaced by 14 new modern apartments by Trinity Square Developments.
Shawbrook Bank stepped in to support Trinity after the initial funder pulled out due to COVID-19 concerns.
Robert Graham, co-owner of Trinity Square Developments, said: “This is an exciting project and one that we believe will spark outstanding demand in this particular area from holidaymakers looking for a stunning UK ‘staycation’ in Devon.
“We became aware of this opportunity when I was visiting family in the area.
"The Lantern Lodge Hotel is known across the Cove but in recent years the establishment has become dated and run down and we believed a complete ground-up re-development would revitalise the area.
"The hotel is situated on a cliff top complete with outstanding uninterrupted sea views of the English Channel and so offered an excellent opportunity.”
He continued: “After a protracted planning process, we obtained consent for 14 apartments and one manager’s apartment to be constructed on the site.
"Of the 14 apartments, nine cannot be used as a primary residence and will be offered as modern, state-of-the-art holiday lets.
"With our local connections, we are also looking forward to using as much local labour as possible for the completion of this project.
“With buyer patterns shifting and high demand for holiday homes and staycations in the UK, we believe these units will be popular with potential owner occupiers and holiday let investors.”
Stewart Budge, who recently joined Shawbrook as a Relationship Manager within the Bank’s specialist Development Finance team, said: “Trinity approached ourselves following a last minute change of heart from their previous lender who had initially agreed to fund the project.
“In line with our specialist foundations and our commitment to assessing each project on its own merits using good sense and judgement, we had faith in both the developer and the potential for this project and so were only too glad to help.
“Not only will this project revitalise the area and offer outstanding holiday lets, but the development will give the surrounding economy a boost also through the use of skilled, local labour and expertise.”
Simon Knowles, director of development finance at Shawbrook Bank, said: “At Shawbrook, we took a view that whilst the location was off patch for this client, the proposed units would be well received in the market and so offered outstanding potential in the current UK holiday market.
“The client has the capabilities and track record to deliver another excellent scheme.
"We are delighted to be supporting this ambitious and exciting project and are eager to see the final result on completion.”
