A new £1.1m loan will help grow the House of Gods hotel brand, founded by brothers Mike and Ross Baxter, to five sites by 2022.
OakNorth Bank – the UK bank powered by OakNorth, has provided a £1.1m facility to BXTR Ltd, the boutique accommodation business founded in 2014 by the brothers – to help fund the expansion which will start with a new 22-bedroom four-star boutique hotel in Edinburgh.
The new hotel will be located only 200 yards away from the city’s Royal Mile and close to Waverly train station. Aimed at tourists and those working in the tech and start-up sector, the hotel will also offer a 40-cover cocktail bar inspired by Rock n’ Rolls bohemian past.
BXTR launched in August 2014 with a 46-bedroom hostel in Edinburgh. Following the success of this first site, the brothers launched a 105-bedroom Kip Hotel in East London. Both venues continue to see above-market occupancy rates which is why Mike and Ross have decided to launch a new brand, which they hope to grow to several sites by 2022.
Mike and Ross Baxter said: “We’re extremely excited to be launching our new hotel, restaurant and bar concept and feel this very popular area of Edinburgh will be the ideal location for both sites to thrive.
“As well as attracting millions of tourists every year, Edinburgh is the largest financial centre outside of London and hosts hundreds of international conferences throughout the year, making it a very popular destination for business trips and holidays.”
They added: “Mohith and the team at OakNorth Bank were incredibly supportive throughout the process, ensuring we were kept in the loop and that any queries we had were quickly addressed. They have a thorough understanding of the hotel sector and share our entrepreneurial drive and ambition.”
Mohith Sondhi, senior debt finance director at OakNorth Bank, said: “Over the last five years since the launch of their first project, the Baxter brothers have proven they can successfully operate both hotels and hostels with their two existing sites experiencing above-market occupancy rates year-round.
“Edinburgh is a city they know well, and the central location of the site will make it popular for tourists and locals alike. They have ambitious plans for the future, so we look forward to supporting them as they continue to expand the brand across the UK.”