London-based bank Leumi UK has completed a £70 million ($72.8 million) refinancing loan with owner Zetland Capital for it to refinance two Marriott International hotels in Edinburgh and Manchester.
The hotels involved in the refinancing are the 160-room Edinburgh Marriott Holyrood and the 338-room Manchester Marriott Hotel Piccadilly.
It is “our second transaction together. [The hotels] are well-positioned to thrive in Edinburgh and Manchester’s strong tourism and business travel markets,” said Zetland’s Ahmed Hamdani, managing director and chief information officer.
Liam Mullans, relationship director of Leumi UK, said, “the two assets have immense potential, and our ability to work hand-in-hand with Zetland Capital was key to completing this deal.”
In 2023, Leumi partnered with Zetland and Marriott on the €51 million ($53 million) refinancing of the Dublin’s Morrison Hotel.
In January, Zetland placed the Morrison — now part of Hilton’s Curio Collection — on the market with a guide price of between €90 million to €95 million, or between €573,250 to €605,100 per key, with the property to be sold with a room count of 157 rooms, not its current 145.
In late January, Leumi underwrote a £20 million loan to Beaconsfield, Buckinghamshire-based Starboard Hotels to refinance the 162-room Hampton by Hilton London Park Royal. In September, the bank underwrote three Italian hotels owned by Israel’s Fattal Hotels Group for €38.6 million: the 131-room Leonardo City Center Milan, 81-room Leonardo Boutique Rome Termini and 145-room Leonardo Hotel Verona.