Shiva Hotels has secured a £230m financing package from real estate investment firms Cale Street and Crosstree to fund the construction of a 199-bedroom luxury lifestyle hotel in London's Marylebone.
Shiva Hotels has secured planning to transform the site, previously an NCP-operated car park, into a hotel with multiple destination restaurants, a rooftop swimming pool and a subterranean event space, due to open in early 2023.
Cale Street is providing £160m and Crosstree £70m of the initial four-year facility, which has an option to extend and refinances an £80m loan that was in place with ICG Longbow.
The Marylebone Lane hotel is just one of the new collection of luxury lifestyle hotels being developed by Shiva Hotels in London, including Morley House on Holborn Viaduct and the former Soho Works site on Great Marlborough Street and Poland Street.
Rishi Sachdev, managing director of Shiva Hotels, said: "This is a challenging time for everyone involved in the hospitality sector and our near-term focus continues to be on working closely with all our stakeholders to navigate through this period of uncertainty. Longer-term however, we are steadfast in our conviction that the global appeal of London will continue and that this will translate into strong demand for our carefully curated hotels in highly desirable locations."
Peter Robinson, a partner at Crosstree, said: "Given the current dislocation in real estate financing markets for projects of this type, Crosstree together with Cale Street are pleased to be working with Shiva in taking forward this prime hotel development. While no doubt we are currently in a challenging period for the hospitality industry, we share a longer term vision of the resilience of London and high quality real estate and locations such as this."
BBS Capital acted as debt advisor for Shiva Hotels. John F Hunt has been appointed to undertake demolition site ground works as well as the initial substructure and frame construction works at the Marylebone Lane hotel, with the main contractor to be appointed early next year.