Cookie Error:

Cookies deactivated. To use all functions on this portal, for example the login, Cookies must be activated. Please activate Cookies in your browser settings.

News » UK
    Print Print 

Shiva Hotels secures £230m financing for Marylebone Lane Hotel development

Shiva Hotels Group has secured a £230 million development financing package from Cale Street Investments and Crosstree Real Estate Partners to fund the construction, through to completion, of its 199-key luxury lifestyle hotel in Marylebone, London. Agreed during the COVID-19 pandemic, the transaction represents one of the largest recent development facilities for a Central London hotel.

Cale Street is providing £160 million and Crosstree £70 million of the initial four-year facility, which has an option to extend and refinances an £80 million loan that was in place with ICG Longbow. It represents the group’s first transaction with Cale Street and Crosstree, both of which have extensive experience financing complex hotel projects of this type.

The Marylebone Lane Hotel is one of the new collection of luxury lifestyle hotels being pioneered by Shiva Hotels, which includes two further development sites, Morley House on Holborn Viaduct and the former Soho Works site on Great Marlborough Street and Poland Street. In addition, The Guardsman, off Buckingham Gate, and Middle Eight, in Covent Garden (formerly known as the Kingsway Hall Hotel and which has had a £50 million refurbishment and repositioning), are scheduled to open to guests this Autumn. The new experiential luxury concept leverages the Group’s extensive track record of investing in, developing and managing hotels across the UK since 2001, with a heavy F&B emphasis and focus on curated design.

The transaction was agreed during the COVID-19 pandemic and represents one of the largest recent development facilities for a Central London hotel.
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.

“This is a challenging time for everyone involved in the hospitality sector and our near-term focus continues to be on working closely with all our stakeholders to navigate through this period of uncertainty. Longer-term however, we are steadfast in our conviction that the global appeal of London will continue and that this will translate into strong demand for our carefully curated hotels in highly desirable locations.”