- Founded in 2004, Staycity is an Irish-owned pan European aparthotel business with 5,304 keys across 32 locations in 15 cities;
- OakNorth Bank provided a £30m loan – £15m of which was through CLBILS – to the business in 2020 to help it through COVID and support its expansion plans;
- This transaction sees the £15m CLBILS part of that £30m loan being refinanced to a regular facility, removing any contingent government support, given Staycity’s like-for-like sales are now ahead of 2019 levels;
- OakNorth Bank has also confirmed its appetite to provide additional facilities to Staycity as required in the future, as the aparthotel business looks to expand to 18,000 keys by 2028, including new sites in Portugal.
OakNorth Bank, the UK bank for entrepreneurs, by entrepreneurs, has completed a £15m refinance with Staycity Group, Europe’s leading aparthotel operator.
Founded in 2004, Staycity is an Irish-owned pan European aparthotel business with is 5,304 keys across 32 locations in 15 cities, including: the UK, France, Ireland, Italy and Germany. The business operates under two brands – Staycity Aparthotels and its premium Wilde Aparthotels by Staycity. OakNorth Bank provided £30m to the business in 2020 to help it through COVID and support its expansion plans. Half of this £30m transaction was under the Coronavirus Large Business Interruption Loan Scheme (CLBILS) and will be refinanced to a regular facility as a result of Staycity’s strong performance. OakNorth Bank has confirmed its appetite to continue supporting Staycity in the future as the business looks to expand to 18,000 keys by 2028, including properties in Portugal.
Staycity’s properties appeal to both business and leisure travellers who are looking for a user-friendly alternative to traditional hotels but with great service, 24-hour reception and the option of self-catering if they choose. The properties are typically made up of studios, one-bedroom and two-bedroom units with fully equipped kitchens, a dining area, sitting area and weekly housekeeping. Many sites have car parking and a gym, guest lounge, laundry facilities and Staycafé selling breakfast, all-day snacks and drinks.
Tom Walsh, CEO and co-founder of Staycity, said: “The hospitality and travel sectors are facing a number of challenges – supply chain issues, labour shortages and the cost-of-living crisis – which are impacting consumer spending and confidence. However, with careful forecasting and refinancing, we emerged from the pandemic ready to crack on with our expansion, and this year, our like-for-like sales are now ahead of 2019 levels. We remain optimistic about the future and confident in our growth plans – sentiments which are fortunately shared by the team at OakNorth Bank who have been a trusted finding partner to us for years and have committed to continuing to support us in the future.”
Deepesh Thakrar, Senior Director of Debt Finance at OakNorth Bank, continued: “Staycity has seen strong growth over the last year, opening several new sites across Europe, and continuing to perform ahead of budget. This is a testament to the exceptional leadership of Tom Walsh and the management team. Unlike many lenders who are pulling back from the hospitality sector given ongoing economic challenges, we take a sector agnostic approach, choosing instead to support strong businesses with exceptional management teams irrespective of sector.”
ENDS
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 £8.4B, directly helping with the creation of 34,000 new jobs and 25,000 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.
Contact
Valentina Kristensen – Director, Growth & Communications – [email protected] / [email protected] / 0757 234 9009