Fattal Hotel Group has secured a £525 million senior loan from Cheyne Capital for the refinancing of four hotels in London.
The loan will support the refinancing of the NYX Hotel London Holborn, Leonardo Royal Hotel London City, Leonardo Royal Hotel London Tower Bridge, and Leonardo Royal Hotel London St Pauls. All four hotels were acquired by Fattal in 2019 and have undergone significant refurbishment to their rooms and facilities which include meeting and event spaces, bars and restaurants, and spa & wellness facilities.
Alongside its own funds, Cheyne’s long-term supporter, Migdal Insurance Company, also participated in the refinancing.
What they said
Guy Vardi, M&A director of Fattal 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 added: “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. We are confident that these London hotels will continue to thrive and deliver excellent returns for policyholders.”