(Bloomberg) -- Cheyne Capital has provided one of the largest senior real estate loans written in Europe this year to refinance a portfolio of London hotels clustered around some of London’s best known tourist landmarks.
The £525 million facility is secured against four hotels owned by Fattal Hotel Group and operated under the Leonardo Hotels brand, according to a statement Monday. They include the NYX Hotel in Holborn, a property close to St Paul’s cathedral and a pair of hotels near London’s Tower Bridge. The loan was provided by funds managed by Cheyne together with a separate commitment from Migdal Insurance Company.
Hotels have proved a rare bright spot for European commercial real estate with rising occupancy and room rates providing a cushion from inflation relative to other parts of the market that rely on long leases. That’s helped encourage a bout of deal making as both equity and debt investors look to deploy capital in commercial real estate serving sectors where there’s high consumer demand.
“This refinancing is one of the largest so far in 2024,” Cheyne Real Estate head of UK investment Arron Taggart said in the statement. “The London hotel market is proving to be a compelling investment as it continues to recover post Covid-19, and we will continue to seek out similar best-in-class investments such as this.”
Fattal bought the hotels in 2019 and completed a major refurbishment program. The properties collectively include 1,300 bedrooms.
©2024 Bloomberg L.P.
