OakNorth Bank lends £9m to Nine Hotel Group for the development of new Gatwick Airport hotel
OakNorth Bank – the UK bank powered by OakNorth – has provided a £9m property development finance facility to Nine Group, a developer and manager of multiple branded hotels across the UK.
The finance will be used to convert the old Menzies Chequers Hotel in Horley, Surrey which is not currently in use into a new four-star Marriott-branded hotel with permission for 131-bedrooms. The hotel, situated just a 10-minute drive from Gatwick Airport, will also have its own restaurant, eight event rooms and 200 parking spaces.
Nine Group currently has 11 hotels under its portfolio, including the recently constructed Novotel Hotel at Heathrow Airport, the Holiday Inn at Watford Junction and the DoubleTree by Hilton in Reading. However, this hotel will be its first targeting travellers from Gatwick.
Vivek Chadha, Managing Director and Founder of Nine Group, said: “The Menzies Chequers Gatwick building has a long history dating back to the 1500’s when it was a coaching inn during the Tudor period. It was serving travellers all that time ago, so we’re excited to be restoring it to its former glory and bringing the unique Nine Group approach to the design. The new hotel will boast premium facilities for guests travelling to and from Gatwick Airport, whether that be for business or pleasure.
“Deepesh and the team clearly have an in-depth understanding of the UK hotel industry, but I was impressed with the level of additional detail they went into in order to understand our business. My team and I greatly enjoyed meeting the Credit Committee and being given the opportunity to discuss our financing needs directly with the decision makers.”
Deepesh Thakrar, Senior Director, Debt Finance at OakNorth, commented: “We have successfully completed a number of transactions in the hotel space – from small boutiques such as Bike & Boot, to modern city chains such as Z Hotels, and large operators such as Starboard Hotels. Vivek and his senior team have an extensive track record and a fast-growing portfolio with some of the most recognisable brands in the world. We look forward to watching the new hotel in Horley prosper and look forward to working with the team on future developments.”