Z Hotels to develop new Trafalgar Square hotel with OakNorth investment
OakNorth has completed a transaction with Z Hotels, a UK-based hotel operator with over 1,000 bedrooms across its 11 sites.
Launched in 2011, Z Hotels has experienced considerable growth in the last few years owning and operating 11 hotels with two more in the pipeline.
The OakNorth loan will be used to acquire office space at 53-59 Chandos Place and convert it into a 123-bedroom hotel, which is set to open in Q4 2019.
The hotel will have a café available to hotel guests and will be within a stone’s throw of several tourism hotspots, including: Leicester Square, Trafalgar Square, the National Gallery, Covent Garden, the West End, and the Strand.
Jonathan Raymond, director at Z Hotels, said: “Over the years, our customer base has continued to grow and we now have hundreds of clients who stay with us several times throughout the year.
“Business travellers and holiday makers alike are attaracted by our competitive prices, sizeable rooms and central locations - this new hotel in Trafalgar Square will be a prime example of all three.
“We chose OakNorth for this transaction as we knew they’d be able to deliver what we need in the time frame we needed it. With further growth targetted over the next few years, we expect to be working with the OakNorth team again in the future.”
Deepesh Thakrar, senior director of debt finance at OakNorth, added: “UK hotels have enjoyed record trading this year, underpinned by the increase in overseas leisure travel, two royal weddings…
“The group achieves much higher occupancy rates and margins than its peers and has proven that it can maintain this across an increasingly expanding portfolio.”
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