Fattal Hotel Group Secures £525 Million Refinancing for London Portfolio

Cheyne Capital, a leading alternative asset manager, has provided a £525 million senior loan to Fattal Hotel Group to refinance four prominent hotels in London. The properties—NYX Hotel London Holborn, Leonardo Royal Hotel London City, Leonardo Royal Hotel London Tower Bridge, and Leonardo Royal Hotel London St Paul’s—comprise over 1,300 rooms and have recently undergone extensive refurbishments, including upgrades to meeting spaces, restaurants, bars, swimming pools, gyms, beauty spas, and therapy rooms.

Acquired by Fattal in 2019, these hotels are part of the group’s European arm, Leonardo Hotels. The refinancing was executed with the collaboration of Migdal Insurance Company, which partnered with Cheyne to support this high-profile transaction.

Guy Vardi, M&A director of Fattal European Partnerships, expressed satisfaction with the partnership, highlighting the trust placed in Fattal’s operational capabilities. He stated, “Collaborating with Cheyne Capital and Migdal Insurance Company on this significant refinancing underscores their confidence in our ability to deliver exceptional hospitality experiences in London.”

Arron Taggart, head of UK investment at Cheyne Real Estate, emphasized the scale and quality of the transaction, noting, “This refinancing stands as one of the largest in 2024, reflecting the strength of Fattal as a premier operator and the resilience of the London hotel market post-COVID-19.”

Erez Migdali, chief investment officer at Migdal Insurance Company, added, “Our continued partnership with Cheyne Capital in financing high-quality hotel portfolios like this aligns with Migdal’s commitment to real estate investment and supporting the growth of robust companies such as Fattal Hotels. We are confident these London properties will deliver excellent returns.”

The refinancing deal reinforces the ongoing recovery and attractiveness of the London hotel market, positioning Fattal to continue enhancing its offerings and maintaining its competitive edge in one of the world’s most vibrant cities.