Fattal Hotel Group has announced the securing of a £525 million senior loan from Cheyne Capital to support the refinancing of four London hotels. The deal also includes participation from Migdal Insurance Company. This move aims to bolster the group’s operations in the UK’s capital, enhancing the properties under the Leonardo Hotels brand.

The hotels included in the refinancing are NYX Hotel London Holborn, Leonardo Royal Hotel London City, Leonardo Royal Hotel London Tower Bridge, and Leonardo Royal Hotel London St Paul’s. These properties, acquired in 2019, comprise over 1,300 bedrooms and have undergone extensive refurbishments to offer high-quality facilities such as meeting and event spaces, bars and restaurants, swimming pools, gyms, beauty spas, and holistic therapy rooms. Their prime locations near London’s major attractions make them ideal for the city’s increasing number of tourists.

Guy Vardi, M&A Director of Fattal European Partnerships, stated, “We are pleased to collaborate with Cheyne Capital, who have brought their exceptional expertise to this 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.”

The refinancing deal will undoubtedly be mentioned at upcoming property networking events in London, where industry professionals will discuss its impact on the real estate market. These events are crucial for sharing networking tips and strategies on how to win construction contracts in the hospitality sector.

Arron Taggart, Head of UK Investment at Cheyne Real Estate, commented, “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.”

The financing and subsequent development of these properties are set to be discussed at numerous investment events in London, providing a platform for further exploration of investment opportunities and property development strategies in the city’s dynamic market.