Owner of Caledonian Hotel gets £62m boost
The owner of Edinburgh’s landmark Caledonian Hotel has secured a £62 million funding deal in a “sign of confidence in Scotland’s hotel market”.
Specialist lenders Topland and Oaknorth Bank have provided the bumper refinancing package via a combination of senior and mezzanine finance. They pointed to recent “positive occupancy data and forecasts” as the sector attempts to get back on its feet post-lockdown.
The famous 214-room hotel, known as The Caley, at the west end of Princes Street is operated under the Waldorf Astoria Brand and has been owned by Abu Dhabi-based Twenty14 Holdings since 2018.
Sol Zakay, chief executive and executive chairman of Topland, said: “We have a long track record in the hotels sector, both at the flagship end and at mid-market level, and continue to believe in the fundamentals of this asset class.
“The right assets under the right management will be sure to bounce back as we emerge from the pandemic and, with significant cash reserves ready to deploy, we are keen to explore such opportunities across the capital stack.”
The deal, originated by Topland, is said to be indicative of current refinancing activity in the hotels sector. The firm’s structured finance division has issuedmorethan£150mofnew loans in the past two months and is targeting £600m of total lending during the course of 2021 in response to renewed interest from borrowers.
Meanwhile, Accor, the global hotels group behind the Ibis and Novotel brands, among others, said it was creating 100 roles across Scotland following the reopening of the hospitality sector.