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UK: Alternative asset manager Cheyne Capital has provided a £525 million senior loan to Fattal Hotel Group to support the refinancing of four London hotels.
The four hotels – NYX Hotel London Holborn, Leonardo Royal Hotel London City, Leonardo Royal Hotel London Tower Bridge, and Leonardo Royal Hotel London St Paul’s – were acquired by Fattal in 2019 and operate under its European arm, Leonardo Hotels.
Representing more than 1,300 bedrooms, the hotels have undergone a refurbishment including meeting and event spaces, bars and restaurants, swimming pools, gyms, beauty spas, and therapy rooms.
Alongside its own funds, Cheyne’s partner Migdal Insurance Company also participated in the refinancing.
Guy Vardi, M&A director of Fattal European Partnerships, said: “We are pleased to collaborate with Cheyne Capital, who have brought their exceptional expertise to this significant, high-profile financing of our beautiful hotels in London. Partnering with them, alongside Migdal Insurance Company, demonstrates the trust they have in our operational performance and hospitality platform, ensuring we continue to elevate our offerings in this vibrant city.”
Arron Taggart, head of UK investment at Cheyne Real Estate, said: “This refinancing is one of the largest so far in 2024 and demonstrates our ability to execute high quality transactions of size. In Fattal, we have both an operator of the highest calibre as well as a funding partner that is willing to step up when required. The London hotel market is proving to be a compelling investment as it continues to recover post COVID-19, and we will continue to seek out similar best-in-class investments such as this.”
Erez Migdali, chief investment officer at Migdal Insurance Company, added: “Migdal Insurance is delighted to partner again with Cheyne Capital on this exciting refinance of a high- quality hotel portfolio, operated by Fattal. Financing this portfolio of high-quality hotels in key tourist destinations alongside our longstanding partners at Cheyne, aligns perfectly with Migdal’s expertise in real estate investment and our commitment to supporting the growth of strong companies like Fattal Hotels. We are confident that these London hotels will continue to thrive and deliver excellent returns for policyholders.”
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