An affiliate of KSL Capital Partners has provided an up to £85 million loan to an affiliate of Resolution Property (including potential future funding) to refinance the development facility secured on the recently opened Hyatt Place, London City East hotel.
The loan is structured to finance potential operating and interest shortfalls as the property’s performance stabilises. Resolution Property was advised by CBRE’s Debt & Structured Finance team, part of CBRE Capital Advisors.
The property is a 280-bedroom hotel in Aldgate and is the first Hyatt Place in Central London. Situated close to London’s financial district, it features a ninth-floor roof-top bar and terrace with views across the capital, two flexible event spaces, an inner courtyard, a gym and a grab-and-go food market.
“Having successfully opened the hotel on 1 July, refinancing the development loan was the next step in the hotel’s life cycle. CBRE and KSL have worked with us to deliver a financing package that reflects the strong fundamentals of the hotel as well as the unique challenges of opening a new hotel during the early stages of London’s hotel recovery,” Scott O’Donnell, COO at Resolution Property, said.