UK: H.I.G. Capital LLC has provided £76 million mezzanine financing to Shiva Hotels.
Shiva’s London portfolio includes The Guardsman (Westminster), Middle Eight (Covent Garden), Lincoln Plaza London, a Curio Collection by Hilton, and a property at Heathrow Airport.
The group secured £230 million development financing in 2020 from Cale Street Investments and Crosstree Real Estate Partners to fund the construction of a luxury lifestyle hotel in Marylebone.
Two additional sites – Morley House on Holborn Viadct and the former Soho Works site on Great Marlborough Street and Poland Street – are also in the pipeline.
H.I.G is a global alternative investment firm with $48 billion of equity capital under management. The company provides both debt and equity capital to small and mid-sized companies.
Riccardo Dallolio, managing director and head of H.I.G. Europe Realty in London, said: “We believe that London’s five star sector will emerge as a winner coming out of the pandemic and that our flexible investing approach across the capital structure has allowed H.I.G. to become a partner of choice for property companies and developers.”
Chris Zlatarev, principal at H.I.G. Europe Realty, added: “We are delighted to partner with Shiva Hotels and have structured tailor-made financing to support the company’s growth. H.I.G. worked with Shiva Hotels and the senior lenders on a financing solution adapted to current market conditions, allowing the company to focus on implementing its business plan.”
Shiva Hotels is a privately owned hotel group led by managing director Rishi Sachdev.