Allica Bank and Capitalise combine to deliver £1.8m bridge-to-term loan for iconic Welsh hotel
Two entrepreneurs have secured a £1.8m bridge-to-term loan from Allica Bank to reopen and transform the Holm House Hotel on the Vale of Glamorgan coast, which closed last year.
It is a landmark deal for Allica, which only launched its bridge-to-term offering earlier this year.
Holm House is an iconic 1920s coastal retreat located on Penarth’s Marine Parade – famously known as ‘Millionaires’ Row’. It operated as a luxury hotel from 2004, hosting celebrities including Tyson Fury, David Hasselhoff, Daniel Craig and Harry Styles.
However, having struggled to return to profitability after the Covid-19 pandemic, in early 2024 it announced it was closing its doors.
But not for long. Kashif Ahmed and Rushna Ghaznavi, who as their day jobs own and run local accounting firm Agnitio Accountants, secured the finance from Allica following an introduction from financial platform Capitalise.com. The pair now plan to bring the Penarth landmark back to life and transform it into a premier destination.
“Our plan is to run things very differently to before,” said Kashif. “Instead of operating as a standalone hotel, we are bringing together a collective of best-in-class operators to manage the rooms, the restaurant and the spa individually.”
Earlier this year, it was revealed that Holm House was to become the second venue of Silures – recently named Cardiff’s most booked restaurant of 2024 by The Fork.
“Holm House is deeply rooted in Penarth’s rich history and we’re delighted to play a part in keeping it alive. Rushna and I have ambitious plans to further develop Holm House as a luxury destination perfectly positioned between nature and culture. For example, we are already actively exploring potential partners for a new wellness centre.”3
Kashif and Rushna had initially struggled to find a backer from the high-street banks as the hotel didn’t have any recent trading activity to support the application due to having closed last January.
“Hotels, restaurants, pubs – the whole hospitality sector – are a critical part of Britain’s economy and our communities. But they really struggle to find the finance they need from the traditional banks to grow. We’re fortunate that Capitalise.com connected us with Allica Bank, who were willing to listen and understand our vision for Holm House. The high-street banks didn’t even give us a look in.”
Senior funding specialist George Corrigan at Capitalise introduced Kashif and Rushna to Andy Reeder at Allica Bank, who suggested a bridge-to-term loan as a solution. Initially starting out as a bridging loan, it would enable Kashif and Rushna to build up a trading history for the hotel before switching automatically onto a standard commercial owner-occupier mortgage when agreed conditions are met, without having to go through two separate application processes.
“George and the team took what could have been a stressful, uncertain process and turned it into something simple and straightforward. Knowing from day one that our long-term finance was secured gave us the confidence to focus on growing the business. The bridge-to-term loan really was the perfect fit.”
Andy Reeder, business development manager at Allica Bank, said, “When we spoke with Kashif and Rushna about their plans for Holm House, their passion and vision for the property were infectious. I’m delighted that Allica are able to support them and help give this iconic hotel a new lease of life.”
George Corrigan from Capitalise, who connected Kashif and Rushna with Allica, said, “Hospitality sector businesses need all the support they can get right now, but are all too often left wanting. That’s why it’s critical the expertise is there to help them find the funding they need to grow. The whole Capitalise team is looking forward to seeing how Kashif and Rushna realise their vision for Holm House.”