Grand Hotel signs £27m loan to refinance redevelopment costs
The Grand Hotel in Birmingham has taken a £27m loan from a private investment company.
Leumi UK, the London-based subsidiary of an Israeli international bank, has completed a the deal to refinance the development costs for the Grand Hotel, Birmingham, the city’s only five-star hotel.
Leumi UK says the deal will help finance both the opening and stabilisation costs of the Grand Hotel, which was acquired in 2017 by funds managed and controlled by the global private investment firm the Starwood Capital Group.
The Grade II-listed, 185-room hotel is due to undergo its grand reopening in May this year, which will include the opening of the hotel’s cocktail bar, Madeleine, and New York-style brasserie, Isaac’s, which is located on Barwick Street.
The deal marks Leumi UK’s first transaction involving funds managed and controlled by Starwood Capital.
Stephen Welch, senior relationship manager, hotel finance at Leumi UK, said: “We are thrilled to be working with Starwood Capital in helping bring one of Birmingham’s most iconic buildings back to life to create a luxury hotel for Birmingham in the 21st century.
“The fact we have been able to secure such a high profile new-to-bank client while we are still under lockdown is a real testament to the strength and hard work of our hotel finance team.”
