UK: Zorca Holding, a subsidiary of investment company Orca Holding, has secured £26.3 million from Leumi UK to acquire and merge two hotels in Bloomsbury into a 74-bed property.
The refurbishment plan will see the two Grade II-listed assets located adjacent to the British Museum merge into a single, luxury hotel with events space, a bar and restaurant. It is expected to open in late 2024.
It marks the second deal between Orca Holding and Leumi UK, following the provision of finance in 2020 for the acquisition of Zetter Group.
Laith Pharaon, CEO of Orca Holding, said: “The London hotels market has proved itself to be incredibly robust in the aftermath of the pandemic and in the face of difficult macroeconomic headwinds, with high-end hotels in particular proving remarkably resilient to inflation. Despite the increase in VAT, London has continued to deliver its highest level of profitability since the start of the pandemic.
“Having worked with Leumi UK before, we know that the team’s deep knowledge of the market as well as their attentiveness to our company values made them the perfect partner for bringing this deal to fruition.”
James Greenwood, relationship director at Leumi UK, said: “Now is an excellent time for Orca to be embarking on the refurbishment of these historic luxury hotels. When the two hotels reopen as one entity it will be in a stronger hotels market which we expect to have overtaken pre-Covid RevPAR. With an expected surge in demand in the area following the completion of Crossrail, the hotels have a bright future ahead.”
CBRE acted as valuers while Bird and Bird acted as Leumi UK’s legal counsel.