The Qatari Diar Real Estate Investment Co., a division of sovereign wealth fund, the Qatar Investment Authority, completed a £450 million ($611 million) refinancing of the 144-room The Chancery Rosewood, the luxury London hotel that opened in September in the former US embassy.
In a LinkedIn post, Amit Kashyap, group chief financial officer, Qatari Diar, said the £450 million was secured from four banks — Doha Bank, Mashreq Corporate & Investment Banking Group, Standard Chartered and United Overseas Bank.
He added that the 50% loan-to-value financing reflects “both the quality of the underlying asset and the lenders’ appetite for well-located, income-producing trophy hospitality in London.”
Kashyap added that also significant is that the hotel holds the “distinction of being the world’s first five-star hotel to achieve a BREEAM (Building Research Establishment Environmental Assessment Method) ‘outstanding’ rating.”
Refinancing has been a major lever for hotel businesses, one that has seen a notable uptick since the beginning of the era of higher interest rates, higher operational costs and the higher cost of debt.
Another recent example in London is the £300 million refinancing by Shiva Hotels of the luxury hotel, The BoTree, now The BoTree London, Curio Collection by Hilton.
On Apr. 30, Mohari Hospitality completed a €330 million ($386 million) refinancing, one of the largest Spain has seen, of the Four Seasons Hotel Madrid, with Generali Real Estate SGR acting as sole lender.
