Boutique hotel brand, House of Gods, is to expand with two new boutiques in Manchester and Glasgow after locking in a new funding deal.
The private-equity brand, founded by brothers Mike and Ross Baxter in September 2019, will open the two new properties using capital secured through a £4.8m loan from OakNorth Bank.
This coupled with a £5m investment from investor IMBIBA will fund the expansion as well as the launch of a new restaurant, Casablanca Cocktail Club at the brand’s first hotel in Edinburgh.
House of Gods Edinburgh opened in 2019 and was also partially funded via a £1.1m loan from OakNorth Bank.
Mike and Ross Baxter, co-founders of House of Gods Hotel said: “We’re very excited to be expanding the brand. The Edinburgh Hotel has been incredibly well received and we feel both Glasgow and Manchester are the perfect locations for the two new hotels. It’s been a challenging year for the industry but with the support of Mohith and his team at OakNorth Bank, the business has traded very well and found opportunity in two fantastic new sites.”
Mohith Sondhi, senior debt finance director at OakNorth Bank, added: “Prior to COVID-19, The House of Gods hotel in Edinburgh had been trading extremely well. When hotels were allowed to re-open in late April this year, it achieved 90% occupancy in May and 95% occupancy in June – a clear demonstration of the demand for this unique hotel concept.
“We want to ensure the business has the capital it needs to not only take advantage of the demand when all restrictions end next month, but to also maximise opportunities to continue growing the brand in the meantime.”