£9m loan secured for hotel’s acquisition and refurb
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OakNorth Bank has provided a £9m loan to Valary Hotels to support the acquisition and refurbishment of a hotel formerly known as Hilton Warwick/Stratford Upon Avon Hotel in Warwick, which will rebrand in September under the Delta by Marriott brand.
In addition to its 181 bedrooms, the 4-star hotel has a 200-cover restaurant, an 80-cover lounge bar, 14 meeting and function rooms which can accommodate up to 450 delegates, a 24/7 gym with several hundred external members, and parking for 200 vehicles.
It is currently operated as a white label hotel using Marriott distribution but post-refurbishment of the lobby and 40 of the 181 rooms, it will be operated as a Delta by Marriott hotel managed by Countrywide Hotels.
Rajiv Nathwani, CEO of Valary Hotels, said: “OakNorth Bank was able to put together a facility that captures the acquisition and refurbishment of the hotel, allowing us to focus on repositioning and refurbishing the site. Unlike many lenders, a single facility was provided resulting in us being able to go from a Hilton to a Delta by Marriott in under six months and will allow us to undertake the heaviest part of the refurbishment whilst the hotel is not yet running at full capacity.
“This was crucial to ensure we’ll be ready to rebrand in September just in time for the start of the post-summer conference season.”
Deepesh Thakrar, senior director of debt finance at OakNorth Bank, commented: “Due to our expertise across both property development and SME trading deals, we were able to create a bespoke facility that will allow Valary Hotels to acquire the hotel, refurbish it, and cover the initial costs of operating it all under one facility.
“The newly refurbished hotel will benefit from the well-known Delta by Marriott brand and strong management from Countrywide Hotels. This, coupled with its range of facilities and proximity to Warwick Castle, will help ensure the newly-refurbished hotel remains as popular as it’s always been.”