Alchemy-backed Inn Collection Group plans to more than double the size of its portfolio to 21 sites by 2022 following £10m loan from OakNorth.
The North East leisure operator, which runs nine sites across Northumberland, County Durham and Teeside, was established in 2006 and has revealed plans to increase the size of its inventory from 271 bedrooms to 900 over the next three years with finance from OakNorth and Alchemy.
This £10m loan will be the second from OakNorth, the first was in June last year enabling the business to open two new sites, bringing its total portfolio to nine inns.
The Inn Collection Group’s managing director Sean Donkin, said: “It has been an incredible 12 months for The Inn Collection Group – we’ve secured backing from one of the UK’s most reputable private equity firms and have successfully secured two loans from OakNorth, a bank that prides itself on the high quality of its loan book. As we look ahead to the future, we are keen to continue building our portfolio with sites that fit with our proposition of providing high-quality accommodation, service, food and beverages, and are delighted to have the support of both OakNorth and Alchemy Partners to help us achieve this.”
Stuart Blair, debt finance director at OakNorth, said: “The North East experienced record-breaking levels of tourism in 2018, according to figures from Visit England. The number of visitors was up across all the Northern Powerhouse regions, but the North East, where most of The Inn Collection Group’s sites are based, recorded the largest rises.
“The fact that the group has managed to secure backing from such an established private equity firm as Alchemy Partners, speaks to the quality of the management team and their ambitious and strategic future growth plans.”