An affiliate of KSL Capital Partners has provided an up to £85 mln loan to an affiliate of Resolution Property to refinance the development facility secured on the recently opened Hyatt Place, London City East hotel.
The loan was issued via KSL's European Capital Solutions platform, and is structured to finance potential operating and interest shortfalls as the property’s performance stabilises.
Scott O’Donnell, chief operating office at Resolution Property commented: 'We are pleased to have worked with CBRE on the financing of Hyatt Place London City East hotel.
'Having successfully opened the hotel on 1 July, refinancing the development loan was the next step in the hotel’s life cycle.
CBRE and KSL have worked with us to deliver a financing package that reflects the strong fundamentals of the hotel as well as the unique challenges of opening a new hotel during the early stages of London’s hotel recovery.'
The property is a 280-bedroom hotel in Aldgate and is the first Hyatt Place in Central London. Situated close to London’s financial district, it features a ninth-floor roof-top bar and terrace with views across the capital, two flexible event spaces, an inner courtyard, a gym and a grab-and-go food market.
Resolution Property was advised by CBRE’s Debt & Structured Finance team, part of CBRE Capital Advisors.
Chris Gow, executive director, debt & structured finance, CBRE commented: 'We are delighted to have secured this financing on behalf of our client, Resolution Property. This transaction demonstrates renewed lending appetite for assets benefitting from a combination of strong real estate fundamentals, established sponsors and an attractive brand.
'It also underlines recovery expectations for the London hotel market, which has been severely challenged over the course of the last year. Demonstrating their in-depth experience of the hospitality sector, KSL provided a thoughtfully structured and seamlessly executed loan to accommodate the property’s opening and post-Covid ramp up.'
Whitechapel and Aldgate have seen significant investment in recent years, with multiple development projects, including 1 Braham Street and The White Chapel Building, improving its connectivity to the rest of London and the surrounding public spaces.
Resolution Property was advised by Taylor Wessing, KPMG and Berkeley Capital and KSL by Latham & Watkins LLP.