OakNorth Bank extends loan facilities to Staycity Group to support 2028 plans

OakNorth Bank, the UK bank for entrepreneurs, by entrepreneurs, has completed a £15m refinance with Staycity Group, Europe’s leading aparthotel operator.

Founded in 2004, Staycity is an Irish-owned pan European aparthotel business with is 5,304 keys across 32 locations in 15 cities, including: the UK, France, Ireland, Italy and Germany. The business operates under two brands Staycity Aparthotels and its premium Wilde Aparthotels by Staycity. OakNorth Bank provided £30m to the business in 2020 to help it through COVID and support its expansion plans.

Half of this £30m transaction was under the Coronavirus Large Business Interruption Loan Scheme (CLBILS) and will be refinanced to a regular facility as a result of Staycity’s strong performance. OakNorth Bank has confirmed its appetite to continue supporting Staycity in the future as the business looks to expand to 18,000 keys by 2028, including properties in Portugal.

Staycity’s properties appeal to both business and leisure travellers who are looking for a user-friendly alternative to traditional hotels but with great service, 24-hour reception and the option of self-catering if they choose.

The properties are typically made up of studios, one-bedroom and two-bedroom units with fully equipped kitchens, a dining area, sitting area and weekly housekeeping. Many sites have car parking and a gym, guest lounge, laundry facilities and Staycafé selling breakfast, all-day snacks and drinks.

Tom Walsh, CEO and co-founder of Staycity, said: “The hospitality and travel sectors are facing a number of challenges - supply chain issues, labour shortages and the cost-of-living crisis - which are impacting consumer spending and confidence.

“We remain optimistic about the future and confident in our growth plans – sentiments which are fortunately shared by the team at OakNorth Bank who have been a trusted finding partner to us for years and have committed to continuing to support us in the future.”

Deepesh Thakrar, senior director of Debt Finance at OakNorth Bank, continued: “Staycity has seen strong growth over the last year, opening several new sites across Europe, and continuing to perform ahead of budget. This is a testament to the exceptional leadership of Tom Walsh and the management team.

“Unlike many lenders who are pulling back from the hospitality sector given ongoing economic challenges, we take a sector agnostic approach, choosing instead to support strong businesses with exceptional management teams irrespective of sector.”

By Mark Adair – Correspondent, Bdaily

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