Leumi UK bank has completed a deal to provide £27m to refinance the development costs for the Grand hotel in Birmingham.
The five-year facility will help finance both the opening and stabilisation costs of the 185-bedroom property, which was acquired in 2017 by funds managed and controlled by the global private investment firm the Starwood Capital.
The Grade II-listed hotel is due to open in May, along with a cocktail bar called Madeleine and a New York-style brasserie called Isaac's.
In recent months, Leumi UK has provided more than £135m in new hotel financing, with transactions including providing development finance for Manex Properties' new Amano hotel in London's Covent Garden, refinancing for Crimson Hotels' investment in the 100 Queen's Gate Hotel London, Curio Collection by Hilton, as well as providing finance for the acquisition of the Zetter Group by Orca Holdings.
Stephen Welch, senior relationship manager, hotel finance at Leumi UK, said: "We are thrilled to be working with Starwood Capital in helping bring one of Birmingham's most iconic buildings back to life to create a luxury hotel for Birmingham in the 21st century.
"The fact we have been able to secure such a high-profile, new-to-bank client while we are still under lockdown is a real testament to the strength and hard work of our hotel finance team. While Covid-19 has caused temporary disruption to the hotel market, we remain confident in the long-term demand for high-quality accommodation in city centre locations."