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Zorca Holdings, a subsidiary of the investment company Orca Holdings, has secured a £26.3m loan from Leumi UK to part fund the acquisition and refurbishment of two hotels adjacent to the British Museum in Bloomsbury.
The hotels are located near Russell Square in London in a distinctive 19th-Century Georgian townhouse, which had many of its former features restored in 2011. The property also has gardens backing onto the British Museum.
The group’s refurbishment plan will see the two Grade II-listed properties merge into a single, luxury hotel with 74 beds, an events space, as well as a bar and restaurant, expected to open in late 2024.
This loan is Leumi UK’s second deal with Orca Holdings since 2020, having previously provided finance for the acquisition of the Zetter Group hotels.
James Greenwood, relationship director at Leumi UK, said: “Now is an excellent time for Orca to be embarking on the refurbishment of these historic luxury hotels. When the two hotels re-open as one entity it will be in a stronger hotels market, which we expect to have overtaken pre-Covid RevPAR.
“With an expected surge in demand in the area following the completion of Crossrail, the hotels have a bright future ahead.”
Laith Pharaon, CEO of Orca Holdings, added: “The London hotels market has proved itself to be incredibly robust in the aftermath of the pandemic and in the face of difficult macroeconomic headwinds, with high-end hotels in particular proving remarkably resilient to inflation.
“Despite the increase in VAT, London has continued to deliver its highest level of profitability since the start of the pandemic.”
