THE Shiva Hotels group has clinched a £230-million development financing package for the construction of a 199-room luxury lifestyle hotel in Marylebone, London.
The transaction -- involving realty finance firms Cale Street Investments and Crosstree Real Estate Partners -- was agreed during the lockdown, and was branded a "vote of confidence" in one of the largest recent development facilities for a central London hotel.
The Marylebone Lane Hotel, which would welcome its first guests in early 2023, is among a range of luxury lifestyle hotels planned by UK-focussed hotel owner and manager Shiva Hotels, which includes two further central London development sites – at Holborn Viaduct and on Poland Street.
While Cale Street will release £160 million, and Crosstree will pump in £70 million into the initial four-year facility.
"This is a major milestone for our Marylebone Lane development, and brings the delivery of what we believe will be one of London’s most iconic hotels one step closer," said Rishi Sachdev, MD of Shiva Hotels.
"This is a challenging time for everyone involved in the hospitality sector and our near-term focus continues to be on working closely with all our stakeholders to navigate through this period of uncertainty.
"In the longer term, however, we are steadfast in our conviction that the global appeal of London will continue and that this will translate into strong demand for our carefully curated hotels in highly desirable locations."
The hotelier noted that Cale Street and Crosstree were "hugely experienced and highly selective real estate financiers and bring a deep understanding of the UK hospitality sector"
"Securing this package, particularly in the current economic climate, is a further endorsement of our vision to create an unrivalled luxury lifestyle hotel brand and we are extremely excited to be partnering with both parties," he added.
Peter Robinson, a partner at Crosstree, said: "Given the current dislocation in real estate financing markets for projects of this type, Crosstree together with Cale Street are pleased to be working with Shiva in taking forward this prime hotel development.
"While no doubt we are currently in a challenging period for the hospitality industry, we share a longer term vision of the resilience of London and high quality real estate and locations such as this."
Shiva Hotels, founded in 2002, said a key driver in the strategic acquisition of the Marylebone Lane site, previously a car park, was both its adjacency to the new Bond Street Crossrail station, as well as its location at a high-profile corner in the area.
Since acquiring the site, Shiva Hotels said it has worked closely with Westminster City Council and local interested parties to secure a planning consent for an "exceptional" building, featuring multiple destination restaurants, a roof-top swimming pool and a subterranean event space.
