Friday 15 January, 2021
Cain provides £74 million development loan UK: Investment firm Cain International has agreed a £74 million development loan with Canary Wharf Group and edyn to finance the development of a 279-key Locke aparthotel.
EDITOR'S COMMENT
We're just two weeks in to the new year and despite the obvious short-term difficulties we are all facing, the strength of our industry has been amply demonstrated by two major UK deals which have made the news this week.
Lamington Group's room2 has completed the sale and leaseback of its flagship Southampton property to a fund managed by Aberdeen Standard Investments (ASI), the UK’s largest active asset manager.
For a relatively new brand with just two trading properties, to secure such a major institutional partner is not just a feather in room2's cap but a real vote of confidence in the aparthotel model and the wider sector.
The fact that the deal was agreed prior to the pandemic and was completed with no discount from its pre-Covid valuation is an impressive endorsement of the way extended stay properties have traded through the lockdowns - in room2's case seeing an average occupancy of 70 per cent across its London and Southampton hometels.
A further boost came with Cain International's provision of a £74 million development loan to Canary Wharf and edyn for a Locke aparthotel. Cain's Matteo Milan said he anticipates that aparthotels "will experience a particularly pronounced uptick in performance as businesses look for a more cost-effective alternative to hotels and as increased flexible working might lead more individuals to live further out from city centres, increasing the need for occasional overnight stays or accommodation when working on a specific project”.
Times are tough right now, but I expect to see more of these deals, plus company M&A activity, as the progressive players in the space position themselves for the medium- and long-term hospitality recovery, a recovery that will be led by serviced apartments and aparthotels.
For more information and sponsorship/advertising
Katie Houghton
Group head of sales: +44 (0)7535 135 116
International Hospitality Media is the premier specialist in online publishing; conference, exhibition and events, and advisory services for growth sectors of the hospitality industry. The company publishes three industry-leading b2b websites - BoutiqueHotelNews.com and ServicedApartmentNews.com and ShortTermRentalz.com which keep their respective sectors up to speed with news, comment and opinion.
Our conference experience spans four continents and covers high growth segments including boutique, lifestyle and hybrid hotels, serviced apartments / aparthotels and extended stay, and vacation rental. Our events are renowned for their intense focus and attract quality industry leaders, brands and independents, providing unparalleled networking and learning opportunities. We also organise bespoke educational events and investor breakfasts to bring owners, investors, operators, and suppliers together. 'Providing an inspirational community to connect people through world class online platforms and events' © 2021 International Hospitality Media. All Rights Reserved.
Confirmation of your subscription opts you in to receive future updates on the newsletter listed above, in addition to relevant communications from our partners. You can opt out at any time.
|