A&C Construction, a hotel refurbishment specialist based in Aldridge near Walsall, has secured £270,000 in funding through the Midlands Engine Investment Fund II. The loan will provide additional working capital as the business takes on several multi-million-pound hotel projects.

Fund manager Frontier Development Capital provided the finance on behalf of the £400 million Midlands Engine Investment Fund II, owned and operated by the government's British Business Bank across the Midlands region.

A&C Construction, registered at Westgate Trading Estate in Aldridge, was founded 35 years ago by Clive and Angela Teale and is now led by their son Chris Teale. The firm employs 13 permanent staff and typically engages between 20 and 70 contractors across its sites.

Its clients have included Crowne Plaza, Radisson, Valor Hospitality, Q-Hotels and Kew Green alongside independent hotels, reflecting the company's position within major branded hotel groups' refurbishment supply chains.

The structural driver is working capital led scaling, converting an established repeat client base among major hotel groups into capacity for larger, live environment refurbishment contracts rather than pursuing new client acquisition.

"Hotel refurbishment is a specialist field and requires the right type of contractor. As hotels rarely close, tradespeople are working in a live environment and must be able to fit around the hotel's schedule and be sensitive to the needs of guests," said Chris Teale, managing director at A&C Construction.

"After 35 years in business, we understand the needs of the industry. The funding will help to support the work in progress and give us the confidence to take on bigger jobs," Teale added.

"A&C Construction is a family business that has built a solid reputation in the hotel sector and wins repeat business from many of the big chains. Lack of working capital can limit the growth of construction firms," said Raj Minhas of Frontier Development Capital.

Steve Harris of Central Finance provided fundraising advice to A&C Construction on the transaction.

The Midlands Engine Investment Fund II has injected more than £100 million into over 225 businesses across the Midlands since launching in 2024, offering debt finance from £25,000 to £2 million and equity investment of up to £5 million.

For the sector, the loan illustrates how regional fund managers are increasingly backing established repeat-supplier relationships in hotel refurbishment rather than funding new market entrants.

Source: TheBusinessDesk / British Business Bank / Frontier Development Capital