Home Business NewsBusinessBusiness Growth News OakNorth completes £232 million club loan to family-run business, Splendid Hospitality Group

OakNorth completes £232 million club loan to family-run business, Splendid Hospitality Group

by Thea Coates Finance Reporter
6th Mar 24 9:33 am

OakNorth, the digital bank for entrepreneurs, by entrepreneurs, has partnered with HSBC on a £232m club loan to Splendid Hospitality Group.

Splendid Hospitality Group is one of the UK’s fastest growing privately-owned hotel groups, with a portfolio of 24 hotels from London to Bristol, York to Edinburgh covering economy, midscale, upper midscale, boutique, and luxury markets.

For over 30 years, it has built an excellent reputation, as well as an impressive portfolio of properties with brands including IHG, Accor, Marriott and Hilton.

The club loan will support future capex works, including the extension of Hilton London Bankside based in Southwark. The hotel currently has 292 rooms, as well as a disillery bar, restaurant, executive lounge, conference and event facilities, a spa and leisure club, and a ballroom which can accommodate up to 700 guests. The capital will enable Splendid to extend the hotel, adding a futher 76 rooms.

Nadeem Boghani, Vice Chairman at Splendid Hospitality Group, said: “Splendid has always been an entrepreneurial business with incredible agility – traits that we know OakNorth and HSBC share.

“The teams demonstrated in-depth knowledge of the hospitality sector, and a clear understanding of what makes our business unique.

“We are incredibly fortunate to operate hotels across the UK, with over seven different brands, as well as independent hotels. With the support of OakNorth and HSBC, we’ll be able to continue delivering the exceptional service and quality, as well as the extraordinary experiences our guests have come to know us for over the decades.”

Ben Barbanel, Head of Debt Finance at OakNorth, continued: “For over 30 years, Splendid Hospitality Group has been creating extraordinary experiences in the hospitality industry, and forging an exemplary reputation in the process.

“This transaction was very exciting not only because it gave us the opportunity to support this incredibly strong family-business, but also because it is the largest club deal we’ve ever participated in.

“The hospitality industry is facing numerous challenges, from staff shortages to the cost-of-living crisis, but despite these headwinds, Splendid Hospitality continues to find opportunities to expand and further enhance its impressive portfolio.”

Elizabeth Davies, Head of Real Estate Finance – Hotels HSBC UK, added: “HSBC UK has enjoyed a strong relationship with Splendid Hospitality for many years and we are proud to continue supporting this best in class, family business.

“Our partnership with Splendid Hospitality reflects HSBC’s enduring commitment to the UK hospitality sector, and our ability to provide bespoke funding solutions to realise clients’ ambitions.”

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