Shiva Hotels has secured £230m in financing with Cale Street and Crosstree for its Marylebone Lane Hotel development.
The 199-room luxury property - a former NCP car park - was due to be completed in early 2023.
Cale Street was providing £160m and Crosstree £70m of the initial four-year facility, which has an option to extend and refinances an £80m loan that was in place with ICG Longbow. It represents the group’s first transaction with the pair.
Shiva Hotels has secured planning consent for a building, featuring multiple destination restaurants, a roof top swimming pool and a subterranean event space.
Rishi Sachdev, managing director, Shiva Hotels, said: “This is a major milestone for our Marylebone Lane development, and brings the delivery of what we believe will be one of London’s most iconic hotels one step closer. Cale Street and Crosstree are both hugely experienced and highly selective real estate financiers and bring a deep understanding of the UK hospitality sector. Securing this package, particularly in the current economic climate, is a further endorsement of our vision to create an unrivalled luxury lifestyle hotel brand and we are extremely excited to be partnering with both parties.
“This is a challenging time for everyone involved in the hospitality sector and our near-term focus continues to be on working closely with all our stakeholders to navigate through this period of uncertainty. Longer-term however, we are steadfast in our conviction that the global appeal of London will continue and that this will translate into strong demand for our carefully curated hotels in highly desirable locations.”
Peter Robinson, a partner at Crosstree, said: “Given the current dislocation in real estate financing markets for projects of this type, Crosstree together with Cale Street are pleased to be working with Shiva in taking forward this prime hotel development. While no doubt we are currently in a challenging period for the hospitality industry, we share a longer term vision of the resilience of London and high quality real estate and locations such as this.”