Z Hotels has completed a £7.3m loan with OakNorth as it continues its aggressive expansion with the opening of Z Tottenham Court Road.
The 119-bedroom hotel in Soho’s Poland Street is set to open this month.
The latest loan follows £15.2m lent to the chain by OakNorth to develop sites in Covent Garden and Holborn, the first of which will open this summer.
Z Hotels launched in 2011 and has a portfolio of more than 800 bedrooms over eight sites, as well as five developments in the pipeline.
Jonathan Raymond, director of Z Hotels, said: “The UK has become more attractive than ever to international visitors and Brits opting for staycations due to the pound being worth a fifth less than it was before the Brexit vote. On any given day, London’s hotels now experience 80% occupancy rates, and we’re in the very fortunate position to have even higher figures than this across all of our sites.
“We are delighted to be working with OakNorth to take our growth plans forward. We had worked with the team before, so knew they had a thorough understanding of our business and the market, and that they could operate quickly and efficiently.”
Deepesh Thakrar, senior director of debt finance at OakNorth, said: “Since our launch in September 2015, we have worked on a number of deals in the hotel sector – from mergers and acquisitions, to buy-outs and development.
“Z Hotels has a proven track record, an excellent business model and a management team with over four decades’ experience. Their unique concept has already proven to be extremely successful, enabling them to achieve much higher occupancy rates and margins than their peers. It is a high-growth and ambitious business that we are keen to support with further expansion.”
In March Z Hotels secured £18m of funding from Metro Bank to purchase a five-storey office block close to Trafalgar Square.
The building in Chandos Place will be converted into a hotel, retaining an existing penthouse apartment.