OakNorth Bank, the UK’s bank for entrepreneurs of entrepreneurs, has completed a £15m refinancing with Staycity Group, Europe’s leading aparthotel operator.
Established in 2004, Staycity is an Irish owned pan-European aparthotel company with 5,304 keys across 32 locations in 15 cities including the UK, France, Ireland, Italy and Germany. The company operates under two brands: Staycity Aparthotels and its premium Wilde Aparthotels by Staycity. OakNorth Bank gave the company £30m in 2020 to help it through COVID and support its expansion plans.
Half of this £30m transaction was under the Coronavirus Large Business Interruption Loan Scheme (CLBILS) and will be refinanced into a regular facility due to Staycity’s strong performance. OakNorth Bank has reiterated its desire to continue supporting Staycity as the company plans to expand to 18,000 keys by 2028, including properties in Portugal.
Staycity’s accommodations appeal to both business and leisure travelers looking for a user-friendly alternative to traditional hotels, but with great service, 24-hour reception and the option of self-catering if they so choose.
Accommodations typically consist of studio, one-, and two-bedroom units with full kitchens, dining areas, sitting areas, and weekly housekeeping. Many locations have parking and a fitness center, guest lounge, laundry facilities, and a stay cafe that sells breakfast, all-day snacks, and drinks.
Tom Walsh, CEO and co-founder of Staycity, said: “The hospitality and travel industry faces a number of challenges – supply chain issues, labor shortages and the cost of living crisis – that are impacting spending and consumer confidence.
“We continue to look to the future with optimism and confidence in our growth plans – sentiments happily shared by the team at OakNorth Bank, who have served us as a trusted partner in our search for years and are committed to continuing to support us in the future. “
Deepesh Thakrar, Senior Director of Debt Finance at OakNorth Bank continued, “Staycity has experienced strong growth over the past year, opening several new locations across Europe and continuing to beat budget. This is a testament to the exceptional leadership of Tom Walsh and the management team.
“Unlike many lenders who are exiting the hospitality industry in the face of ongoing economic challenges, we take an industry-agnostic approach, choosing instead to back strong businesses with exceptional management teams regardless of industry.”
By Mark Adair – Correspondent, Bdaily
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