Dominvs Group has successfully secured a £68.5million funding from Coutts and Clydesdale Bank Plc in two separate facilities; with £48 million from Coutts allowing for the development of a new Hampton by Hilton hotel in London’s Aldgate, and a £20.5 million investment loan from Clydesdale Bank Plc for the Courtyard by Marriott hotel in Oxford.
The successful raising of funding for both projects reflects the firm’s good banking relationships and confidence in the group’s development and operational capabilities, alongside rising optimism in the UK hotel industry after the start of the COVID-19 vaccination programme in the UK.
The hotel at 12-20 Osborn Street in Aldgate, formerly the Arbor City Hotel, was purchased by Dominvs Group in October 2018 and planning was granted for a new larger hotel scheme on the site during Q4 2018.
The new £48 million of funding from Coutts covers the refinance of the original acquisition loan for the site and allows for the development of the new 118,000 sqft 278-key Hampton by Hilton London City hotel, with practical build completion scheduled for June 2023.
The new 5-storey Hampton by Hilton London City hotel will comprise the refurbishment of the existing hotel plus a new-build extension, with the construction undertaken by leading contractor McAleer and Rushe.
Preeptal Ahluwalia, Director at Dominvs Group, commented: “Dominvs Group is delighted to have successfully secured £68.5 million of fresh bank funding which allows for the development of our new Hampton by Hilton branded hotel in London’s Aldgate and has refinanced our Courtyard by Marriott branded hotel in Oxford. The successful funding reflects our good banking relationships and confidence in the group’s development and operational capabilities, alongside rising optimism in the UK hotel industry following the start of the COVID-19 vaccination programme in the UK. It is excellent to see the confidence in the hotel industry returning and these two hotels are well-placed to benefit from the gradual return of both domestic and overseas visitors to London and Oxford, two of the UK’s most popular tourist and business trip hotspots and destinations of increasing hotel need.”