Leumi UK has provided a £26.3m loan package to Zorca Holding – a subsidiary of investment company Orca Holding – to part fund the purchase and refurbishment of two hotels near Russell Square in London.
The refurbishment will see the two Grade II-listed Georgian townhouses merged into a single, luxury, 74-bed hotel with events space, bar and restaurant. The hotel is expected to open in late 2024.
James Greenwood, relationship director at Leumi UK, said: “Now is an excellent time for Orca to be embarking on the refurbishment of these historic luxury hotels. When the two hotels re-open as one entity it will be in a stronger hotels market which we expect to have overtaken pre-Covid RevPAR. With an expected surge in demand in the area following the completion of Crossrail, the hotels have a bright future ahead.”
Laith Pharaon of Orca Holding added: “The London hotels market has proved itself to be incredibly robust in the aftermath of the pandemic and in the face of difficult macroeconomic headwinds, with high-end hotels in particular proving remarkably resilient to inflation.
“Despite the increase in VAT, London has continued to deliver its highest level of profitability since the start of the pandemic. Having worked with Leumi UK before, we know that the team’s deep knowledge of the market as well as their attentiveness to our company values made them the perfect partner for bringing this deal to fruition.”
CBRE acted as valuers and Bird and Bird acted as Leumi UK’s legal counsel.
