• Saturday, April 13, 2024

Business

OakNorth completes £232m loan to Splendid Hospitality Group

Rishi Khosla, CEO of OakNorth

By: Pramod Thomas

OAKNORTH BANK has partnered with HSBC to provide a £232 million club loan to Splendid Hospitality Group to support its future expansion plans, a statement said.

Founded three decades ago, Splendid Hospitality Group is one of the UK’s fastest growing privately-owned hotel groups, with a portfolio of 24 hotels from London to Bristol, York to Edinburgh.

It is controlled and directed by Shiraz and Nadeem Boghani.

Their group operates 2,500 bedrooms across its properties as well as 39 fast food restaurants (KFC) and three care homes.

With the latest financing, among expansion plans of the group is that of Hilton London Bankside, based in Southwark.

The property currently has 292 rooms, as well as a distillery bar, restaurant, executive lounge, conference and event facilities, a spa and leisure club, and a ballroom which can accommodate up to 700 guests.

OakNorth’s loan will enable Splendid to add 76 rooms to the property.

Splendid also has properties with brands including IHG, Accor, Marriott and Hilton in a range of markets – from economy to boutique and luxury.

Shiraz was one of the first hoteliers in the 1990s to start developing limited-service, branded hotels in London and has since been involved in over 25 such projects.

As current chairman, he directs the growth strategy of the business.

Vice chairman of the group, Nadeem, said: “Splendid has always been an entrepreneurial business with incredible agility – traits that we know OakNorth and HSBC share. The teams demonstrated in-depth knowledge of the hospitality sector, and a clear understanding of what makes our business unique.

“We are incredibly fortunate to operate hotels across the UK, with over seven different brands, as well as independent hotels. With the support of OakNorth and HSBC, we’ll be able to continue delivering the exceptional service and quality, as well as the extraordinary experiences our guests have come to know us for over the decades.”

Splendid Group’s portfolio includes York’s only five-star hotel, The Grand, York and Hilton London Bankside.

Ben Barbanel, head of debt finance at London-based OakNorth, said, “For over 30 years, Splendid Hospitality Group has been creating extraordinary experiences in the hospitality industry, and forging an exemplary reputation in the process. This transaction was very exciting not only because it gave us the opportunity to support this incredibly strong family-business, but also because it is the largest club deal we’ve ever participated in.

“The hospitality industry is facing numerous challenges, from staff shortages to the cost-of-living crisis, but despite these headwinds, Splendid Hospitality continues to find opportunities to expand and further enhance its impressive portfolio.”

Elizabeth Davies, head of Real Estate Finance – Hotels HSBC UK, said, “HSBC UK has enjoyed a strong relationship with Splendid Hospitality for many years and we are proud to continue supporting this best in class, family business. Our partnership with Splendid Hospitality reflects HSBC’s enduring commitment to the UK hospitality sector, and our ability to provide bespoke funding solutions to realise clients’ ambitions.”

British Indian entrepreneur Rishi Khosla and Joel Perlman jointly created Oaknorth as a digital bank lending to small businesses in 2015. The financial technology firm helps small medium enterprises (SMEs) to secure debt finance.

Since its launch, it has lent £10 billion to entrepreneurs across the UK, leading to the creation of over 40,000 new jobs and over 29,000 new homes.

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