It’s always exciting to support a long-standing client on their growth trajectory, particularly when it involves one of the largest financings in their sector.
We’ve been working with Z Hotels for a number of years, across a number of transactions, so it was great to advise them on their latest step, securing a £79m loan facility from Metro Bank, one of the bank’s largest financings in the hotel sector.
Given the size and nature of Z Hotels’ business and the complex requirements of the transaction, we deployed a cross‑departmental team who worked collaboratively to complete the deal within an ambitious timeframe.
The financing represents an important move for the group, releasing cashflow and enabling further investment across its London estate. The facility refinances the group’s original development finance arrangements and provides long‑term investment funding for two of Z Hotels’ landmark assets in central London: Leicester Square and Trafalgar Square.
The Leicester Square hotel, located on Chandos Place, was developed through the conversion of an office building into a high‑quality boutique destination. The Trafalgar Square hotel has recently secured planning consent for additional rooms, strengthening its long‑term value and supporting the continued growth of the Z Hotels portfolio.
Rich Meehan, one of the founders and Finance Director of Z Hotels, added:
“Securing this financing is a major milestone for us and Matthew and the team at Fladgate were, as always, on point in helping us get the deal over the line.”
Our partner and team lead, Matthew Lindsay, said:
“We have acted for Z for many years, and it is great to see two of their iconic hotels secure long-term financing from Metro.”
Alongside Matthew, our team included Rami Serhal, Tanzil Majumdar and Billy Hughes (Funds, Finance and Regulatory), Gavin Whitney and Fiona Smith (Real Estate) and Myckala Bellis (Construction).
