Allica and Capitalise back £1.8m Holm House Hotel reopening

Two entrepreneurs have secured £1.8 million in funding to reopen Holm House Hotel in Penarth, Vale of Glamorgan, after the property closed earlier this year.

The deal, arranged through Allica Bank’s new bridge-to-term loan facility and introduced by financial platform Capitalise.com, marks one of the first transactions of its kind for the bank since launching the product in 2025.

Holm House, a 1920s coastal villa located on Marine Parade, known locally as “Millionaires’ Row,” has long been a landmark in Penarth. Converted into a boutique hotel in 2004, it has hosted high-profile guests including actors Daniel Craig and David Hasselhoff, and boxer Tyson Fury. The hotel closed in early 2024 after struggling to recover from the pandemic.

The new owners, Kashif Ahmed and Rushna Ghaznavi, who run local firm Agnitio Accountants, plan to relaunch the property with a revised operating model.

Rather than running the hotel as a single entity, they intend to appoint separate specialist operators for the accommodation, restaurant, and spa.

Holm House will also house the second venue of Cardiff restaurant Silures, which was recently named the city’s most booked restaurant of 2024, according to booking platform The Fork. The pair have also indicated they are seeking partners to develop a new wellness centre at the site.

Ahmed said the pair initially struggled to secure finance from mainstream banks, citing the lack of recent trading history as a barrier. They were introduced to Allica by Capitalise, which recommended the bridge-to-term loan structure. The product allows borrowers to establish trading records with an initial bridging loan before transitioning to a standard commercial mortgage once conditions are met, without a second application.

“When we spoke with Kashif and Rushna about their plans for Holm House, their passion and vision for the property were infectious,” said Andy Reeder, business development manager at Allica Bank.

“I’m delighted that Allica are able to support them and help give this iconic hotel a new lease of life.”

Capitalise senior funding specialist George Corrigan, who connected the borrowers with Allica, said hospitality firms often face barriers to finance. “That’s why it’s critical the expertise is there to help them find the funding they need to grow,” he said.

The reopening of Holm House is expected to restore one of Penarth’s most notable hospitality venues, with plans to position it as a high-end destination on the South Wales coast.