- Founded in 2004, Capilon Hotels Group (“Capilon”) is a property development and management business focussing on central London hotels;
- To date, the group has operated and developed 11 hotels across London, including The Blandford Hotel in Marylebone and The Judd Hotel in Bloomsbury;
- Prima Asset Management (“Prima”) is a Singapore based private equity real estate company focused on real estate investments across the United Kingdom, Australia and South-East Asia;
- The £19.5m co-loan will be used to acquire and refurbish a six-story vacant hotel along Westbourne Terrace and convert it into a new 80-room boutique upper-upscale hotel;
- London was recently named the most attractive European city for hotel investment in 2024,[1] with Paddington highlighted as a key opportunity area.
OakNorth, the digital bank for entrepreneurs, by entrepreneurs, and real estate funding specialist, ASK Partners (“ASK”) have provided a £19.5m co-loan to independent hotel management business, Capilon Hotels Group.
Capilon specialises in property investment, development and management of various sectors and asset classes, with a particular focus on central London hotels. Since launch, the group has evolved from initially acquiring townhouse hotels throughout key areas of London including Bloomsbury, Kensington, Paddington and Victoria, to now having operated and developed 11 hotels across London, such as The Blandford Hotel in Marylebone and The Judd Hotel in Bloomsbury. The group is partnered with Prima, a Singapore based global private equity real estate company. The firm focusses on delivering strong risk-adjusted returns across market cycles through investing into opportunities which mitigate inflation, debt pricing, and construction cost challenges, whilst also capitalising on the upside potential created by the repricing of real estate assets and exposure to thriving sectors
The £19.5m co-loan from OakNorth and ASK will be used to acquire and refurbish a nine-storey, Grade II listed, vacant hotel in Paddington, and convert it into a new 80-room boutique upper upscale hotel. Situated along Westbourne Terrace and bordering Hyde Park, the site is easily accessible and very centrally located with only a short walk from Paddington station, as well as many of London’s main tourist attractions.
Capilon, commented: “For over 20 years now, our small but dedicated team has delivered hotels that have all the things that you need, and none of the things you don’t, in order to offer the best value for money for our customers. This new site, situated on Hyde Park’s doorstep, embodies this approach perfectly, and will be an excellent choice for those visiting the capital for business or pleasure. After being impressed with both OakNorth’s and ASK’s reputation for backing experienced and entrepreneurial hoteliers, they were our clear funders of choice and offered us an impressive level of flexibility and transparency from start to finish.”
Ben Hall, Chief Executive Officer at Prima, shares: “The strategic acquisition of this prime property not only signifies our focus on the resilient London hotel market but also positions us in one of London’s most attractive growing sub-markets. We’re confident this institutionally structured deal, coupled with the benefits of using a Singapore VCC investment structure will provide our investors with a unique risk-adjusted opportunity to invest into the United Kingdom’s real estate market.”
Lucas Anglin, Associate Director of Debt Finance at OakNorth, added: “As a result of Capilon Hotels’ hugely talented team, the group has built a highly impressive reputation for delivering quality hotels across London. With the capital’s hotel market set for significant investment going forward, the firm is in a perfect position to capitalise on this tailwind. We’re delighted to have been able to support such a well-renowned and established hotel firm and we look forward to watching their growth story going forward.”
Mike Ginsberg, Investment Analyst at ASK, said: “Given Capilon’s excellent track record and the site’s central Zone 1 London location, ASK was very happy to underwrite this loan. We believe Capilon are well poised to deliver an exceptional offering to the marketplace. It was a pleasure to work with them and our partner OakNorth and I wish them all the best with the project.”
ENDS
[1] Deloitte – London becomes the most attractive European city for hotel investment in 2024
About OakNorth
Launched in September 2015, OakNorth is the digital bank for entrepreneurs, by entrepreneurs, empowering scale-up businesses (£1m-£100m turnover) to support growth, prosperity, and innovation for the benefit of all.
Since its launch, the bank has:
- Lent over £10bn to these businesses, directly helping with the creation of 40,000 new jobs and 29,000 new homes across the UK.
- Raised deposits from c.175,000 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.
Visit www.oaknorth.co.uk for more information.
Media contact
Valentina Kristensen, Director, Growth & Communications – [email protected] / [email protected] / 0757 234 9009