Hotel Cafe Royal, a 150-year-old five-star hotel in Soho, is getting a £165m boost from real estate investment giant Barings Real Estate.
The seven-year, fixed rate loan will be used by Hotel Cafe Royal to refinance its existing debt.
“This is a rare opportunity to provide financing for one of London’s most iconic hotels, which attracts growing numbers of tourists visiting from across the globe,” Chris Bates, the head of Core Mortgage Europe at Barings, said.
The loan has a 47 per cent loan-to-value proportion, and it is secured against the 159 rooms in the hotel as well as 16,000 sq ft of retail space on the building’s ground floor. Lotus, Nespresso and Wolford currently occupy the building’s spaces along Regent Street.
Bates said the company’s debt financing of Hotel Cafe Royal is part of Barons’ ongoing plan to pursue “alternative sectors” of the United Kingdom’s real estate market. The company’s portfolio diversification within the past year ventures into sectors ranging from development financing to student housing.
Barons also manages the assets of luxury hotels in Boston, Chicago, Hong Kong and other large cities.