OakNorth has completed a £73m loan to Z Hotels, bringing its total lending to the hotel group to £225m.
The ‘compact luxury’ hotel chain intends to use the additional funding to support its newly opened 120-bedroom Z Tottenham Court Road hotel on Poland Street in Soho.
The specialist bank previously lent Z Hotels £15.2m to develop the group’s sites in Covent Garden and Holborn, with the first of these opening this summer.
Z Hotels currently has eight hotels across its portfolio, with five developments in the pipeline, and is submitting planning applications for several new sites as it pursues the next stage of its growth.
“We are delighted to be working with OakNorth to take our growth plans forward,” said Jonathan Raymond, director at Z Hotels.
“We had worked with the team before so knew they had a thorough understanding of our business and the market, and that they could operate quickly and efficiently.”
Deepesh Thakrar, senior director of debt finance at OakNorth, said it has worked on a number of deals in the hotel sector, ranging from mergers and acquisitions to buyouts and development.
“Z Hotels has a proven track record, an excellent business model and a management team with over four decades’ experience.
“It is a high-growth and ambitious business that we are keen to support with further expansion.”
SIGN UP TO OUR NEWSLETTER TO RECEIVE MORE NEWS LIKE THIS STORY
British Business Bank UK Network aims to improve funding awareness across UK
The British Business Bank UK Network will help to improve awareness of funding options across the UK by directly approaching business finance professionals...
Building with confidence in challenging times
It is difficult to think of a time in the past three decades when the chasm between the interests of UK business and the Palace of Westminster has been more exposed than the Brexit debacle...
Real Property Finance passes £100m in deals with Cambridge & Counties Bank
Cambridge & Counties Bank has provided more than £100m of loans for the clients of Real Property Finance (RPF)...
Metro Bank reports 48% increase in lending
Metro Bank has reported that its lending increased by 48% in 2018 compared with 2017...
Metro Bank appoints Luke Lloyd-Davies to advisory board
Metro Bank has appointed Luke Lloyd-Davies to its advisory board...
OakNorth: how some of the entrepreneurs we’ve lent to first got started
For many, the new year brings with it new possibilities and the chance to explore new opportunities...
Hanley Economic BS to push self-build offering
Hanley Economic Building Society is set to commence an extensive 2019 self-build campaign as it aims to engage with growing numbers of self-builders...
NatWest offers Esme Loans directly to its SME customers
NatWest will now offer Esme Loans products directly to its existing SME customers...
OSB appoints new NED
OneSavings Bank has announced that it has appointed Sarah Hedger as a non-executive director, with effect from 1st February...
Tandem Bank reaches 500,000 customers
Tandem has announced that it has reached 500,000 customers one year on from being granted a full banking licence...
Bank Leumi UK appoints new head
Bank Leumi (UK) has appointed Sarah Ryman (pictured above) as its new head of premier banking and liabilities...