United Kingdom-based hotel owner and operator Shiva Hotels is refinancing The BoTree, its luxury hotel in London's Marylebone neighborhood, for more than £300 million ($375 million).
Birmingham, England-based BlueWater Capital provided a £170 million senior loan, and London-based NorthWall Capital provided a £140 million secured facility, according to a news release. The deal refinanced an existing loan with London firms Cale Street Real Estate Partners and Crosstree Investments.
Borehamwood, Hertfordshire-based Shiva Hotels said the refinancing of The BoTree is the largest single-asset hotel refinancing deal in Europe since the end of the pandemic. The firm said the financing “has been secured on competitive terms.”
The BoTree, a 199-room hotel, opened in Marylebone off Oxford Street in September 2023 and is part of Shiva Hotels' fledgling Place III Hotels brand. The BoTree is set to start on its next phase of major renovations, which include a rooftop pool and bar lounge, a fitness and wellness area and additional private dining and meeting space. The property sits opposite the former Debenham’s department store that is currently being renovated as multi-use space.
Shiva Hotels CEO Rishi Sachdev said it was not only the hotel’s prime location in trendy Marylebone that attracted investment, but also the property’s “future potential.”
“[That], coupled with the hotel sector’s continued growth, saw us generate interest from a deep pool of funders keen to support us on this transaction. We have remained patient, however, and have chosen two like-minded counterparties with the track record and expertise to support us on the next stage of our journey,” he said.
Place III Hotels is Shiva Hotels’ most recent and current project. Before that, the company owned or managed a 2,000-room-plus franchised portfolio for brands affiliated with Best Western International, Hilton, IHG Hotels & Resorts, Marriott International, Ramada and Wyndham Hotels & Resorts. One of Shiva's first projects was the Hampton by Hilton London Waterloo — London’s first Hampton by Hilton hotel — which it sold in 2017.