UK: Following almost £10 million in funding, House of Gods is set to expand with two new hotels in Glasgow and Manchester.
A fresh £4.8 million loan from OakNorth Bank, coupled with a £5 million investment from IMBIBA in February, will support the expansion of the House of Gods brand.
The funding will also go towards launching the Casablanca Cocktail Club restaurant at the brand’s Edinburgh property.
Mike and Ross Baxter, co-founders of House of Gods, said: “We’re very excited to be expanding the brand. The Edinburgh hotel has been incredibly well received and we feel both Glasgow and Manchester are the perfect locations for the two new hotels. It’s been a challenging year for the industry but with the support of Mohith and his team at OakNorth Bank, the business has traded very well and found opportunity in two fantastic new sites. OakNorth Bank have been incredibly supportive over the last year, behaving as a true partner, rather than a bank. We’re grateful for their ongoing support and belief in the long term potential of our business.”
Mohith Sondhi, senior debt finance director at OakNorth Bank, added: “Prior to Covid-19, the House of Gods hotel in Edinburgh had been trading extremely well. When hotels were allowed to re-open in late April this year, it achieved 90 per cent occupancy in May and 95 per cent occupancy in June – a clear demonstration of the demand for this unique hotel concept. We want to ensure the business has the capital it needs to not only take advantage of the demand when all restrictions end next month, but to also maximise opportunities to continue growing the brand in the meantime. Since our last loan to the business in 2019, Mike and Ross have beefed up the senior management team with two excellent hires and have secured investment from one of the leading investors in this space. It is businesses like House of Gods Hotel that will play a vital role in the UK’s post-pandemic economic recovery, so it is essential they get the support they need to not only survive, but also thrive.”
The first House of Gods hotel in Edinburgh was partially funded by a £1.1 million loan from OakNorth in 2019.
