Silk Property Group has secured a £19.8m loan from Bank of London and the Middle East to fund its acquisition of a new Motto by Hilton hotel in Glasgow.
Located on the banks of the River Clyde in the city centre, the 186-bedroom hotel will be the first Motto by Hilton to open in the UK.
The hotel is expected to open in 2024, with features including multiple connecting rooms for families and larger groups.
BLME said the transaction underpinned a “flight to quality” taking place in the real estate market.
Steve Isaacs, real estate finance director at BLME, said: “This deal demonstrates renewed investor interest in property assets in the hospitality sector, following a period of decline after it was hit especially hard both by the Covid-19 pandemic and the recent surge in energy prices.
“Glasgow attracts three million tourists each year, so a property situated in one of the city’s most desirable locations – with views overlooking the River Clyde – is likely to prove attractive to investors wary of capital value depreciation among secondary and tertiary assets. We predict that premium quality properties such as Motto by Hilton Glasgow will continue to prove highly attractive to international investors in 2023.”
Richard Diamond of Silk Property Group said: “As a prime property located in the heart of a city with enduring international appeal – and the UK’s first ever Motto by Hilton hotel – this asset is a very strong addition to our investment portfolio.”
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