OakNorth Bank has provided a £9m property development finance facility to Nine Group for a new 131-bedroom Mariott-branded hotel.
The hotel will replace the old Menzies Chequers Hotel in Horley, Surrey which is not currently in use.
The hotel will be situated within a 10 minute drive from Gatwick Airport and will have its own restaurant, eight event rooms and 200 parking spaces.
Nine Group has 11 hotels in its current portfolio including a recently constructed Novotel Hotel at Heathrow Airport, the Holiday Inn at Watford Junction and the Double Tree by Hilton in Reading.
Managing Director and founder of Nine Group Vivek Chadyha 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.
He added: “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 of 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.”
OakNorth Bank recently provided a £1.1m loan to entrepreneur brothers Mike and Ross Baxter for the launch of a brand new hotel in Edinburgh.