Germany’s Aareal Bank has inked a deal to refinance the acquisition of a hotel portfolio, bought by an opportunity fund advised by Tristan Capital Partners, with a £239.9m loan.
Earlier this year, Tristan’s opportunistic fund European Property Investors Special Opportunities 6 acquired a majority shareholding in Raag Hotels, which owns the boutique brand Point A.
Comprising 1,387 rooms across nine hotels in London, Edinburgh and Glasgow, the properties are managed and co-owned by family business Queensway Group.
Aareal Bank acted as sole arranger, facility and security agent for the financing.
Aareal Bank managing director, special property finance, Bettina Graef-Parker said: “Hotels in the UK, particularly in London, have been recovering quickly, with performance already nearing pre-pandemic levels, proving the resilience of the sector.
“We have always believed that quality accommodations for both domestic and international travellers in prime locations will be in constant demand. Hotels therefore remain a key growth driver for Aareal Bank’s commercial lending portfolio, and for good reason.”
JLL’s hospitality team advised on valuation.
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