Leumi UK has reached an agreement to provide Â£ 27million to refinance the development costs of the Grand Hotel de Birmingham, the city’s only five-star hotel.
The five-year facility will help fund both the costs of opening and stabilizing the Grand Hotel, which was acquired in 2017 by funds managed and controlled by global private investment firm Starwood Capital Group.
The 185-room, Grade II-listed hotel is slated to reopen in May this year, which will include the opening of the hotel’s cocktail bar, Madeleine, and New York-style brasserie, Isaac’s, located on Barwick Street. .
The deal marks Leumi UK’s first transaction involving funds managed and controlled by Starwood Capital. Starwood Capital is primarily focused on global real estate and, since its inception in 1991, has raised over $ 55 billion in equity.
In recent months, Leumi UK has provided over Â£ 135million in financing for new hotels, with deals including financing the development of Manex Properties Ltd’s new Amano hotel in Covent Garden, refinancing the investment from Crimson Hotels in the 100 Queen’s Gate Hotel London, Curio Collection by Hilton, as well as the financing of the acquisition of the Zetter group by Orca Holdings.
Stephen Welch, Senior Relationship Manager, Hotel Finance at Leumi UK, said: âWe are delighted to be working with Starwood Capital to help revive one of Birmingham’s most iconic buildings to create a luxury hotel for Birmingham in the 21st century.
âThe fact that we were able to secure a first-time client at such a prestigious bank while we are still in foreclosure is a real testament to the strength and hard work of our hotel finance team.