Inn Collection Group (ICG) has announced plans to more than double the size of its portfolio by 2022 after securing a £10m loan from OakNorth.
ICG plans to reach 21 sites with the second round of support from OakNorth.
The first loan to the group was made in June 2018 and allowed it to expand to nine sites across Northumberland, County Durham and Teesside. ICG, which was established in 2006, had been acquired by private equity firm Alchemy Partners since the first loan.
It currently has 271 rooms across the nine sites but hopes to increase this to almost 900 with the planned expansion.
The Inn Collection Group’s managing director Sean Donkin, said: “It has been an incredible 12 months for The Inn Collection Group – we’ve secured backing from one of the UK’s most reputable private equity firms and have successfully secured two loans from OakNorth, a bank that prides itself on the high quality of its loan book. As we look ahead to the future, we are keen to continue building our portfolio with sites that fit with our proposition of providing high-quality accommodation, service, food and beverages, and are delighted to have the support of both OakNorth and Alchemy Partners to help us achieve this.”
OakNorth has said the loan reflects its interest in the north east of England, which saw a 17% growth in tourism in the six months to June 2018.
Stuart Blair, debt finance director at OakNorth, said: “The North East experienced record-breaking levels of tourism in 2018, according to figures from Visit England. The number of visitors was up across all the Northern Powerhouse regions, but the North East, where most of The Inn Collection Group’s sites are based, recorded the largest rises.
“The fact that the group has managed to secure backing from such an established private equity firm as Alchemy Partners, speaks to the quality of the management team and their ambitious and strategic future growth plans. We were delighted when they returned to us for a second loan and look forward to working with the group on their continued expansion in the future.”