A multimillion pound deal to finance the management buy-out of Hollybourne Hotels, owners of The Red Lion Hotel in Basingstoke, has been funded by Lloyds TSB Corporate Markets.

The Hollybourne Group, which has hotels in Basingstoke and Alton and an annual turnover of £7 million, has become renowned for offering first class venues for business conferences, corporate events and weddings.

The £16.35 million financing solution provided by Lloyds TSB will see Hollybourne Hotels’ executive team of four directors take a substantial share in the company for the first time. This new, robust financial structure will provide a stable platform from which to develop and grow the organisation.

Stuart Shepherd, Relationship Director at Lloyds TSB Corporate Markets commented:

Hollybourne Hotels burst on to the South East business scene 23 years ago and hasn’t looked back. It just goes to show that, despite current market conditions, there are still deals to be done for well-managed businesses. We are excited to be on board and look forward to continuing our close relationship with Hollybourne as the group develops and grows.

Hollybourne employs over two hundred people across Surrey and Hampshire and has flourished by establishing a great reputation for top quality hotels within the local community. The deal will see founder Tony Bailey take a step back as the executive team, led by David Knights, drive the organisation forward. Tony will still be involved in the running of the business and the re-structuring will enable plans for growth and expansion to be set into motion.

David Knights, Hollybourne Hotels, commented on the deal:

This is a major period of transition for the group and Lloyds TSB’s expertise has been invaluable. Stuart and his team worked with their specialist financial markets division to provide us with a creative, bespoke deal that exactly met our operational requirements