- In 2019, OakNorth Bank provided The Inn Collection Group with a funding package to support the doubling of its portfolio to 21 sites by 2022;
- Thanks to COVID, the Group has managed to exceed this target, acquiring quality sites at competitive entry prices, and now has 26 inns across Northumberland, County Durham, the Lake District, Tyne and Wear, and Wales;
- OakNorth Bank has provided the Group with further capital to refurbish over a dozen of its existing sites and support the redevelopment of the current property portfolio;
- Over the last 18 months, the Group has strengthened its management team, hiring both a CFO and Operations Director, as well creating an in-house development team.
FOR IMMEDIATE RELEASE. OakNorth, the UK bank for entrepreneurs, by entrepreneurs, has provided The Inn Collection Group – one of North East England’s top leisure operators with 26 sites across Northumberland, County Durham, the Lake District, Tyne and Wear, and Wales – with a £42M loan to refurbish 13 of the inns in its portfolio and support continued redevelopment of the current property portfolio. The Black Swan in Helmsley and The Pheasant Inn in Bassenthwaite are two inns funded via the OakNorth Bank capital which have now reopened after high-quality refurbishments.
Established in 2006, Inn Collection Group is a market leader in developing contemporary inns – providing accommodation, food and drink to leisure and business customers. It is backed by Alchemy Partners, the British private equity firm which has invested over £4B across more than 185 transactions since its inception in 1997.
In 2019 with equity capital from Alchemy and debt capital from OakNorth Bank, the Group set out to grow from 271 rooms across nine sites to almost 900 rooms across 21 sites by 2022. However, it has managed to exceed this ambitious target with a portfolio that’s grown to over 1,000 rooms across 26 sites, including its first in Wales in the heart of the Snowdonia National Park. It is keen to capitalise on the staycation trend so is refurbishing 13 of its sites and continuing to develop the current property portfolio.
Sean Donkin, Managing Director of Inn Collection Group, said: “COVID has of course been hugely challenging for the sector, but as with any good business, we’ve tried to find opportunity in times of turmoil. That is why we are keen to continue developing our portfolio with sites that fit with our proposition of providing high-quality accommodation, service, food and beverages. There’s a reason why this is the third time we’ve worked with OakNorth Bank – the team know what they’re doing, understand our business, and deliver on their promise of speed and flexibility. We are grateful to both OakNorth Bank and Alchemy for their continued support.”
Stuart Blair, Debt Finance Director at OakNorth Bank, continued: “We’ve been very impressed by the evolution of Inn Collection Group – over the years, it has continued to build a quality portfolio, balancing ambitious and strategic growth with achievable and sustainable results. With more than 19 years experienced in the hospitality sector, Sean has an outstanding track record, and over the last 18 months, has bolstered management with both a CFO and Operations Director. This has evidently yielded results both in terms of positive trading at all new sites – a clear indication of strong site selection – but also in the Group’s ability to acquire quality sites throughout COVID at competitive entry prices. The fact that the Group has backing from Alchemy Partners, speaks volumes about the quality of both its management team and future growth potential.”
Notes to editors
About OakNorth Bank plc
Launched in September 2015 and founded by entrepreneurs, OakNorth Bank provides fast, flexible, and accessible debt finance to the UK’s Missing Middle.
Since its launch, the bank has:
- Lent over £7B, directly helping with the creation of 27,600 new jobs and 22,300 new homes across the UK.
- Raised deposits from c.160,000 savers.
- Supported several hundred businesses across the UK with the debt finance to pursue their growth ambitions.
It is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.
Valentina Kristensen, Director of Growth & Communications at OakNorth – [email protected] / 0757 234 9009