Topland, along with OakNorth Bank, has refinanced the Caledonian Hotel in Edinburgh for £62 million via a combination of senior and mezzanine finance.
The 214-room hotel is operated under the Waldorf Astoria Brand and has been owned by Abu Dhabi-based Twenty14 Holdings since 2018.
Sol Zakay, CEO and executive chairman of Topland, said: “We have a long track record in the hotels sector, both at the flagship end and at mid-market level, and continue to believe in the fundamentals of this asset class. The right assets under the right management will be sure to bounce back as we emerge from the pandemic and, with significant cash reserves ready to deploy, we are keen to explore such opportunities across the capital stack.”
The deal, originated by Topland, is indicative of current refinancing activity in the hotels sector. With mainstream lenders taking a more conservative position, alternative lenders are expected to increasingly fulfil requirements to refinance existing assets.
Topland Group’s structured finance division has issued over£150m of new loans during the last 2 months and is targeting £600m of total lending during the course of 2021 in response to renewed interest from borrowers.