New hotel Hyatt Place London City East has secured a £85m debt facility in a refinancing deal as its performance ‘stabilises’ following opening.
CBRE facilitated the deal from an affiliate of KSL Capital Partners to Resolution Property, owners of the recently-completed 280-bedroom hotel in Aldgate, and the first Hyatt Place in central London.
The loan is structured to finance potential operating and interest shortfalls as the property’s performance ‘stabilises’.
Situated close to London’s financial district, Hyatt Place London City also features a ninth-floor roof-top bar and terrace, two event spaces, an inner courtyard, a gym and a grab-and-go food market.
Scott O’Donnell, COO 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.”