Resolution Property secures £85m Aldgate hotel refi
An affiliate of Resolution Property has bagged an £85m loan from KSL Capital Partners’ European capital solutions platform to refinance the development facility for the Hyatt Place London City East hotel, E1.
The 280-bedroom hotel, in Aldgate, opened last month as the first Hyatt Place in central London. It includes a ninth-floor rooftop bar and terrace, flexible event spaces, an inner courtyard, a gym and a grab-and-go food market.
The loan is structured to finance potential operating and interest shortfalls as the property’s performance stabilises.
An affiliate of Resolution Property has bagged an £85m loan from KSL Capital Partners’ European capital solutions platform to refinance the development facility for the Hyatt Place London City East hotel, E1.
The 280-bedroom hotel, in Aldgate, opened last month as the first Hyatt Place in central London. It includes a ninth-floor rooftop bar and terrace, flexible event spaces, an inner courtyard, a gym and a grab-and-go food market.
The loan is structured to finance potential operating and interest shortfalls as the property’s performance stabilises.
Chris Gow, debt and structured finance executive director at CBRE, which advised Resolution on the deal, said: “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.”
Scott O’Donnell, chief operating officer at Resolution Property, said: “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.”
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