Dominvs Group has secured £68.5M of funding for two flagship hotels to be constructed in London and Oxford.
The real estate development and investment group has received the investment from Coutts and Clydesdale Bank Plc in two separate facilities.
As part of the deal £48m from Coutts will allow for the development of a new Hampton by Hilton hotel in London’s Aldgate, and a £20.5m investment loan from Clydesdale Bank Plc will support the renovation of the Courtyard by Marriott hotel in Oxford.
The hotel at 12-20 Osborn Street in Aldgate, London formerly the Arbor City Hotel, was purchased by Dominvs Group in October 2018 and planning was granted for a new larger hotel scheme on the site during Q4 2018.
Dominvs group has said the new funding from Coutts covers the refinance of the “original acquisition loan for the site” and allows for the development of the new 118,000 sqft 278-key Hampton by Hilton London City hotel, with “practical build completion scheduled for June 2023.”
In addition the new five storey Hampton by Hilton London City hotel will “comprise the refurbishment of the existing hotel plus a new-build extension”. Alongside 278 rooms and suites, the new hotel will provide meeting, dining and events space including a cinema room and large function room.
Preeptal Ahluwalia, director at Dominvs Group, said: “Dominvs Group is delighted to have successfully secured £68.5m of fresh bank funding which allows for the development of our new Hampton by Hilton branded hotel in London’s Aldgate and has refinanced our Courtyard by Marriott branded hotel in Oxford.
“The successful funding reflects our good banking relationships and confidence in the group’s development and operational capabilities, alongside rising optimism in the UK hotel industry following the start of the Covid-19 vaccination programme in the UK.”
He added: “It is excellent to see confidence in the hotel industry returning and these two hotels are well-placed to benefit from the gradual return of both domestic and overseas visitors to London and Oxford, two of the UK’s most popular tourist and business trip hotspots and destinations of increasing hotel need.”