Sandman hotel group seals multimillion-pound refinance…

Sandman hotel group seals multimillion-pound refinance deal to fuel future growth

The owners of a prime Newcastle hotel have secured a multimillion-pound refinance package to help fuel the group’s ongoing growth.

Sandman Hotel Group has made a series of recent acquisitions to add to its core sites in Newcastle, Gatwick and Aberdeen, with further growth planned. The UK and Ireland business – based at the Gallowgate hotel in the shadow of St James’s Park – forms part of a family-owned business based in Vancouver, Canada, which is one of the largest privately owned hotel chains in North America with more than 50 sites in Canada alone.

The group has secured a new eight-figure funding facility from HSBC, having been supported by longstanding advisors in the specialist real estate finance team at Newcastle law firm Sintons. The UK arm of the group has recently added to its portfolio with Portmarnock Hotel and Golf Links in Ireland, as well as a newly acquired site in Sheffield .

It opened its first UK site in 2011 in Newcastle, having regenerated part of the former Scottish & Newcastle Brewery site to create the Sandman Signature Newcastle Hotel. It has since made significant investment into its Gatwick and Aberdeen sites, and is looking at the next phase of growth with renewed confidence following the huge challenges of the pandemic.

Company director and head of the United Kingdom and Ireland arm of the business, Mitch Gaglardi, said: “Since our inception, we have worked fiercely on expansion plans for Sandman Hotel Group United Kingdom and Ireland. We are entirely committed to delivering incredible service for our guests and furthermore, creating job opportunities and contributing to the local communities our properties lie within.

“We’re delighted to announce this further investment and continued backing from HSBC and we’re looking forward to additional development across our United Kingdom and Ireland portfolio. The support from the team at HSBC has allowed us to move on with ambitious plans, and we’re pleased to already be seeing further success within the market. We’re a determined and hardworking company and this funding stream will allow us to fulfil the growth goals we have worked hard to lay the foundations for.”

Jane Meikle, partner and head of banking, and real estate partner Alok Loomba led the transaction, supported by banking solicitor Sophie Townes and real estate senior associate Chris Jackson.

Mr Loomba said: “Sandman Hotel Group have been building their presence in the UK market since their first opening in 2011, and more recently have been acquisitive in their approach to expansion across the United Kingdom and Ireland. This new funding stream from HSBC will enable them to unlock the next phase of their growth, allowing Mitch and the team to explore options around the ongoing development of the group in the UK.

“We are very pleased our specialist banking and real estate finance teams could again support Sandman Hotel Group in a highly significant transaction within the leisure marketplace, which positions the business strongly to take advantage of further opportunities.”

Burges Salmon acted for HSBC in the transaction.