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Shiva Hotels Group has announced it has secured a £230m development financing package to fund the construction of its new lifestyle hotel in Marylebone, London.
John F Hunt, the construction specialist, has been appointed to undertake demolition site ground works as well as the initial substructure and frame construction works, with the main contractor to be appointed early next year.
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. It represents the group’s first transaction with Cale Street and Crosstree, both of which have extensive experience financing complex hotel projects of this type.
The Marylebone Lane Hotel is one of the new collection of luxury lifestyle hotels being pioneered by Shiva Hotels, which includes two further development sites, Morley House on Holborn Viaduct and the former Soho Works site on Great Marlborough Street and Poland Street.
In addition, The Guardsman, off Buckingham Gate, and Middle Eight, in Covent Garden – formerly known as the Kingsway Hall Hotel and which has had a £50m refurbishment and repositioning – are scheduled to open to guests this Autumn.
Rishi Sachdev, managing director of Shiva Hotels, said: “This is a major milestone for our Marylebone Lane development, and brings the delivery of what we believe will be one of London’s most iconic hotels one step closer.
“Cale Street and Crosstree are both hugely experienced and highly selective real estate financiers and bring a deep understanding of the UK hospitality sector.”
He added: “Securing this package, particularly in the current economic climate, is a further endorsement of our vision to create an unrivalled luxury lifestyle hotel brand and we are extremely excited to be partnering with both parties.
“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.”
Sachdev concluded: “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.”
