Fast-expanding aparthotel operator Staycity Group has secured a five-year £30m loan facility from OakNorth Bank.
The new backing from OakNorth sees the conversion of a £15m Covid support loan granted in 2020 become a regular loan facility on the back of Staycity’s like-for-like RevPAR [rooms revenue per available room] and operating margins now ahead of 2019 levels together with healthy bookings into the final trading quarter of 2022.
The Ireland Strategic Investment Fund has also extended Staycity’s credit facility from €20m to €30m for five years if required.
Tom Walsh, Staycity Group CEO and co-founder, said: “Staycity is going into 2023 in a strong position with trading this year having surpassed our expectations. Our sales have been driven by leisure recovery and growth through our corporate channels. We are also pleased that our guest scores across both brands are very high.
“Looking forward, we’re cautious as all businesses are facing a number of macroeconomic threats including high levels of inflation, rising energy costs and the on-going impact of the war in Ukraine. With these new OakNorth and ISIF facilities in place we have contingency plans if the economy moves into recession. We are immensely proud and grateful for the on-going support and recognition we have from these two institutions.”
The aparthotel operator recently opened its seventh property in Dublin at Little Mary Street, giving it nearly 1,200 apartments in its home city.
“Dublin city centre completes our current phase of openings in Dublin and we’re delighted to be able to offer our guests a great choice of properties across the city,” added Walsh. “Dublin is immensely important to us and its fantastic to see the growing popularity of the city as a destination for both leisure and increasingly returning business travellers.”
