Two entrepreneur brothers are to launch a new boutique hotel brand with finance backing from OakNorth Bank that will enable the pair to open their first property in Edinburgh.
Mike and Ross Baxter, founders of BXTR, the company behind the 105-bedroom Kip Hotel in East London, have locked in a £1.1m deal with the Bank to open a new 22-bedroom hotel in Scotland’s capital as part of a new brand, House of Gods.
Aimed at tourists and those working in the tech and start-up sector, the hotel will also offer a 40-cover cocktail bar inspired by Rock n’ Rolls bohemian past.
Adjacent to this, the brothers will be developing the Cowgate Market, a 70-cover Hawker style restaurant and bar.
As part of an ambitious expansion plan, the Baxters aim to launch four more properties under the brand name by 2022, with between 20-50 rooms per hotel.
The duo first entered the hospitality industry in 2014 with the opening of the Baxter Hostel in Edinburgh and following its success, they launched the Kip Hotel in London.
Mike and Ross Baxter, co-founders of BXTR said: “We’re extremely excited to be launching our new hotel, restaurant & bar concept and feel this very popular area of Edinburgh will be the ideal location for both sites to thrive. As well as attracting millions of tourists every year, Edinburgh is the largest financial centre outside of London and hosts hundreds of international conferences throughout the year, making it a very popular destination for business trips and holidays.
Mohith Sondhi, senior debt finance director at OakNorth Bank, added: “Over the last five years since the launch of their first project, the Baxter brothers have proven they can successfully operate both hotels and hostels with their two existing sites experiencing above-market occupancy rates year-round. Edinburgh is a city they know well, and the central location of the site will make it popular for tourists and locals alike. They have ambitious plans for the future, so we look forward to supporting them as they continue to expand the brand across the UK.”