A new £27m 12-storey aparthotel development in Aldgate has been given the go-ahead, in the latest sign of confidence in London’s hotel market.
US asset manager Oaktree Capital Management has backed the development, which will be a new Locke hotel operated by Edyn Group.
The 103-unit venue in Buckle Street, near Aldgate East station and the new Whitechapel Crossrail Station, will incorporate office space and a ground-floor restaurant.
The development, which is due to open in summer next year, is Edyn Group’s second Aldgate site, and is across the road from another larger Locke venue.
Oaknorth Bank provided a £27m structured finance facility to Oaktree Capital Management to fund the development
Deepesh Thakrar, senior director of debt finance at Oaknorth Bank, said: “The demand for hotels offering longer-term stays continues to be high across London, with the sector growing at a quicker pace than the traditional hotel industry, and the rate of the pound continuing to make the UK an attractive destination for both domestic and international travellers.
“Given their impressive track record, The Edyn Group, are in a prime position to take advantage of this trend.”
Merzak Kaddour, investment director at Edyn Development Studio, added: “Our decision to work with Oaknorth was driven primarily by the strong relationship I have with the debt team and the depth of knowledge displayed by Oaknorth’s team in structuring this facility. We look forward to a prolonged working relationship”.