Shiva Hotels has secured a £230m development financing package to fund the construction and completion of a new hotel in Marylebone.
The deal was agreed with Cale Street Investments (£160m) and real estate investment and finance firm, Crosstree Real Estate Partners (£70m) for the initial four-year facility, which has an option to extend, and also refinances an £80m loan that was in place with ICG Longbow.
Shiva Hotels will now proceed with the development of a new 199-bedroom luxury lifestyle hotel in Marylebone, London, with an opening date pencilled in for early 2023.
The Marylebone Lane Hotel, previously an NCP operated car park, will also comprise multiple restaurants, a rooftop swimming pool and a ‘subterranean’ event space.
The property will join Shiva Hotels’ new luxury collection of hotels, which includes Middle Eight – a £50m renovation of the former Kingsway Hall Hotel – and The Guardsman in London, both due to open in the autumn.
The group is also developing two sites, Morley House on Holborn Viaduct and the former Soho Works site on Great Malborough Street and Poland Street.
Rishi Sachdev, managing director of Shiva Hotels, commented: “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. Cale Street and Crosstree are both 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.”