Shiva Hotels Group has secured a £230 million development financing package from Cale Street Investments, and Crosstree Real Estate Partners for the construction and completion of the 199-key luxury lifestyle hotel in Marylebone, London.
Cale Street is providing £160 million and Crosstree £70 million of the initial four-year facility, which has an option to extend and refinances an £80 million loan that was in place with ICG Longbow.
Since acquiring the site, Shiva Hotels has worked closely with Westminster City Council and local interested parties to secure a planning consent for an exceptional building, featuring multiple destination restaurants, a roof top swimming pool and a subterranean event space. The first guests are due to be welcomed in early 2023.
Rishi Sachdev, Managing Director of Shiva Hotels, said: “This is a major milestone for our Marylebone Lane development, and brings the delivery of what we believe will be one of London’s most iconic hotels one step closer. Cale Street and Crosstree are both hugely experienced and highly selective real estate financiers and bring a deep understanding of the UK hospitality sector. Securing this package, particularly in the current economic climate, is a further endorsement of our vision to create an unrivalled luxury lifestyle hotel brand and we are extremely excited to be partnering with both parties.
“This is a challenging time for everyone involved in the hospitality sector and our near-term focus continues to be on working closely with all our stakeholders to navigate through this period of uncertainty. Longer-term however, we are steadfast in our conviction that the global appeal of London will continue and that this will translate into strong demand for our carefully curated hotels in highly desirable locations.”
