Fattal Hotel Group, a hospitality company, has secured a £525m ($678.65m) senior loan from Cheyne Capital for refinancing four London hotels.
These four properties are NYX Hotel London Holborn, Leonardo Royal Hotel London City, Leonardo Royal Hotel London Tower Bridge, and Leonardo Royal Hotel London St Paul’s.
Fattal European Partnerships M&A director Guy Vardi said: “We are pleased to collaborate with Cheyne Capital, who have brought their exceptional expertise to this significant, high-profile financing of our beautiful hotels in London.
“Partnering with them, alongside Migdal Insurance Company, demonstrates the trust they have in our operational performance and hospitality platform, ensuring we continue to elevate our offerings in this vibrant city.”
The properties to be refinanced were acquired by Fattal in 2019 and operate under the company’s European arm, Leonardo Hotels.
They collectively offer more than 1,300 bedrooms.
Since the acquisition, these hotels have renovated meeting spaces, bars and restaurants, swimming pools, gyms, and wellness facilities.
The refinancing deal also saw the involvement of Migdal Insurance Company, which partnered with Cheyne Capital to support Fattal's financial move.
Cheyne Real Estate UK investment head Arron Taggart said: “This refinancing is one of the largest so far in 2024 and demonstrates our ability to execute high-quality transactions of size. In Fattal, we have both an operator of the highest calibre, as well as a funding partner that is willing to step up when required.
“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.”
Last month, Leonardo Hotels reached an agreement to acquire Zien Group along with 12 hotels in the Netherlands from affiliates of KSL Capital Partners and Garden Capital Group.
The acquisition includes hotels in locations such as Amsterdam, Rotterdam, The Hague, Eindhoven, Groningen, and Maastricht.
Fattal currently has more than 200 hotels across 19 countries.
