Brothers Mike and Ross Baxter plan to grow their boutique hotel brand House of Gods to five sites in the next three years, after opening their first site in Edinburgh last month.
The brothers, who opened the 46-bedroom Baxter hostel in Edinburgh in 2014 under their company BXTR and operate the 105-bedroom Kip hotel in London's Hackney, secured a £1.1m loan from OakNorth Bank towards the 22-bedroom hotel which opened in Edinburgh's Cowgate on 13 September.
They are also using the money to develop the Cowgate Market, a 70-cover, late night, Hawker-style outlet adjacent to the new hotel, which is due to open in March. Further properties would have 20-50 bedrooms each.
Mike and Ross Baxter said: "We're extremely excited to be launching our new hotel, restaurant and bar concept and feel this very popular area of Edinburgh will be the ideal location for both sites to thrive."
Mohith Sondhi, senior debt finance director at OakNorth Bank, added: "Over the last five years since the launch of their first project, the Baxter brothers have proven they can successfully operate both hotels and hostels with their two existing sites experiencing above-market occupancy rates year-round. Edinburgh is a city they know well, and the central location of the site will make it popular for tourists and locals alike. They have ambitious plans for the future, so we look forward to supporting them as they continue to expand the brand across the UK."