Z Hotels secures £15m loan to support growth
The latest facility from the bank will be used to fund the construction of an additional 20 rooms at its Piccadilly location, taking its total number of rooms to 132
Hotel chain Z Hotels has secured a £15m loan from OakNorth Bank with the aim to refinance an existing loan and support its future growth ambitions.
The chain is a recurring customer of OakNorth, and initially secured bespoke funding in 2018 to support the group’s expansion of new sites across central London in Covent Garden, Holborn, and Tottenham Court Road.
The latest facility from the bank will now be used to fund the construction of an additional 20 rooms at its Piccadilly location, taking its total number of rooms to 132.
In addition, the funding will be used to develop new elevators and a new ground floor café.
The hotel group, which first launched in London in 2011, has experienced “continued” success with 14 sites now operational, including 11 in London and one each in Liverpool, Bath, and Glasgow, offering 1,710 bedrooms in total.
Bev King, CEO of Z Hotels, said: “Since our launch 12 years ago, the focus of our brand has continued to be very simple – offer consumers a chain of hotels that are positioned in central locations, with reasonable room rates that come with modern and stylish designs and high-quality features throughout.
“OakNorth has now supported us on multiple transactions, and we see them as our trusted funding partner that has worked closely with us through the challenging times of both the pandemic and the current cost-of-living crisis.”
She added: “With this latest facility from OakNorth, we are moving to work closer with its team and look forward to further growing the Z Hotels brand across the UK, whilst also expanding our site at Piccadilly.”
Deepesh Thakrar, senior director of debt finance at OakNorth, said: “Z Hotels’ unique proposition has enabled it to build a broad and diverse portfolio in a relatively short space of time and achieve incredibly high occupancy consistently throughout the year.
“We’re thrilled to once again have the opportunity to support a best-in-class team and look forward to working with them again in the future.”
