Z Hotels has secured a £15 million refinancing deal with OakNorth Bank.
The hotel chain will use the facility from OakNorth to refinance its current loan facilities and fund the construction of 20 more rooms at its Piccadilly location, taking its total number of rooms to 132. The cash will also be used to develop new lift facilities and a new ground floor café.
Z Hotels previously secured funding from OakNorth in 2018 to support its expansion across central London, with the addition of new sites in Covent Garden, Holborn, and Tottenham Court Road.
Why it matters
OakNorth has been very active with refinancing deals in recent months, with agreements inked including a £9.8 million loan to boutique Eccleston Square Hotel in London and a £15 million loan to The Consolidated Group to refinance 100 Wardour Street in London's Soho district. At a time where many borrowers are nervous about upcoming refinancings, this deal demonstrates continued investment interest in prime locations.
What they said
Bev King, CEO at Z Hotels said: “OakNorth has now supported us on multiple transactions, and we see them as our trusted funding partner that has worked closely with us through the challenging times of both the pandemic and the current cost-of-living crisis. With this latest facility from OakNorth, we are moving to work closer with its team and look forward to further growing the Z Hotels brand across the UK, whilst also expanding our site at Piccadilly.
Deepesh Thakrar, senior director, debt finance at OakNorth added: “Z Hotel’s resilience to the Covid pandemic has been exceptional, with the business now exceeding pre-Covid trading levels. We’re thrilled to once again have the opportunity to support a best-in-class team and look forward to working with them again in the future.”