Z Hotels has secured a £79m loan from Metro Bank to refinance two prime London freehold hotels in Leicester Square and Covent Garden.
Garrick House Leicester Square
The facility, structured and procured by Beckford Advisory, is secured against the assets. The loan will enable Z Hotels to refinance their original development finance facilities.
The Leicester Square hotel, located on Charing Cross Road, was developed following the conversion of an office building, while the Covent Garden site at Bedford Street has recently secured planning consent for additional rooms, enhancing its long-term value
The group said the loan terms will release cashflow and allow it to invest in the continued growth of its portfolio.
Beckford Advisory partner John Kerrigan said: “Metro Bank took a highly competitive approach to lending and showed a clear desire to support established operators.
“Their understanding of key operational markets ensured an alignment of interests and reliable delivery of the funding.”
James Salford, partner at Shoosmiths, who advised Metro Bank, said: ” This landmark transaction demonstrates the banks continued commitment to supporting established operators in the hospitality sector.”
The Shoosmiths team was led by Salford, principal associate Anna Richardson, senior associate Hannah Tinsley and trainee solicitor Beth McTigue.
Last year, Z Hotels appointed Avison Young UK and JLL to market Garrick House hotel in Leicester Square for £42m in a sale-and-leaseback deal.
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