The Hyatt Place London City East hotel, which opened last month, has been refinanced for £85m.
Via its European Capital Solutions platform, an affiliate of KSL Capital Partners has provided a loan of up to £85m to an affiliate of developer Resolution Property to refinance the development facility secured on the 280-bedroom hotel.
The loan is structured to finance potential operating and interest shortfalls as the property's performance stabilises.
The property is the first Hyatt Place in central London and has a ninth-floor roof-top bar and terrace, two event spaces, a gym and a grab-and-go food market.
Resolution Property was advised by CBRE's debt and structured finance team, part of CBRE Capital Advisors.
Scott O'Donnell, chief operating officer at Resolution Property, said: "We are pleased to have worked with CBRE on the financing of Hyatt Place London City East hotel. Having successfully opened the hotel on 1 July, refinancing the development loan was the next step in the hotel's life cycle. CBRE and KSL have worked with us to deliver a financing package that reflects the strong fundamentals of the hotel as well as the unique challenges of opening a new hotel during the early stages of London's hotel recovery."
Chris Gow, executive director, debt and structured finance at CBRE, added: "We are delighted to have secured this financing on behalf of our client, Resolution Property. This transaction demonstrates renewed lending appetite for assets benefitting from a combination of strong real estate fundamentals, established sponsors and an attractive brand. It also underlines recovery expectations for the London hotel market, which has been severely challenged over the course of the last year. Demonstrating their in-depth experience of the hospitality sector, KSL provided a thoughtfully structured and seamlessly executed loan to accommodate the property's opening and post-Covid ramp up."
Resolution Property was advised by Taylor Wessing, KPMG and Berkeley Capital and KSL by Latham & Watkins.