UK: The five-year facility will help finance the opening and stabilisation costs of the Grand Hotel, which was acquired in 2017 by Starwood Capital Group.
The deal marks Leumi’s first transaction involving funds managed and controlled by Starwood Capital. Currently, Starwood has in excess of $73 billion of assets under management.
The facility will cover the development costs of the hotel, which is scheduled to reopen in May this year. It is a Grade II-listed, 185-room hotel that features the cocktail bar Madeleine and brasserie Isaac’s.
Stephen Welch, senior relationship manager of hotel finance at Leumi UK, said: “We are thrilled to be working with Starwood Capital in helping bring one of Birmingham’s most iconic buildings back to life to create a luxury hotel for Birmingham in the 21st century. The fact we have been able to secure such a high profile new-to-bank client while we are still under lockdown is a real testament to the strength and hard work of our hotel finance team. While Covid-19 has caused temporary disruption to the hotel market, we remain confident in the long-term demand for high quality accommodation in city centre locations.”
In recent months, Leumi UK has provided over £135 million in new hotel financing. Transactions include development finance for Manex Properties’ new Amano Hotel in Covent Garden; refinancing Crimson Hotels’ investment in the 100 Queen’s Gate Hotel London, a Curio Collection by Hilton property; and providing finance for the acquisition of the Zetter Group by Orca