UK: NatWest has completed a £22 million loan to Resident Hotels, which will fund the delivery of the brand’s upcoming property in Edinburgh.
Last year, owners of Resident Hotels, Mactaggart Family & Partners, announced the development of Meldrum House on Drumsheugh Gardens. The former HM Revenue & Customs office is to be converted into a 166-room Resident Hotel.
Renovation works are already underway with an anticipated opening in Q1 2024. The project is expected to cost £50 million.
The financial backing from NatWest will help to fund the extension and refurbishment of the building’s original structure to include additional floors. Compared with a new build, redeveloping the site will save approximately 40 per cent of embodied carbon emissions and nearly 700 tonnes of carbon dioxide.
William Laxton, UK CEO at Mactaggart Family & Partners, said: “We are excited to bring The Resident brand to Edinburgh, a fantastic and bustling city that is the perfect location for our business model.
“This development represents a significant move for our business as we continue to implement our ambitions for modern luxury and sustainable builds as we grow Resident Hotels across the UK. We are extremely grateful for the faith NatWest has placed in the operating model and project, particularly at an uncertain time for the industry during Covid.”
Anthony Say, head of hotels at NatWest Corporate Banking, said: “It is fantastic to see The Resident debut in Edinburgh after what has been an extremely challenging time for the whole hospitality sector.
“We are delighted to be supporting this high-quality hotel operator and brand which will further enhance the rich hospitality offering within this iconic city, with a focus on environmental development as well as contributing towards regeneration of an historic area. We look forward to continuing to support The Resident’s ambitions in the future.”