One of the UK’s premium hotel and bar operators based in the North East has successfully refinanced £101m with the help of HSBC, in a deal supported by Mincoffs Solicitors LLP.
Cairn Group, a privately owned business, will use £50m of the total pot for acquisition and development to strengthen its portfolio, which already includes 26 hotels and more than 30 bars and restaurants as well as care homes across the UK.
The news follows the latest acquisitions of the Ramada Glasgow Airport Hotel in November 2015 and 17th century Buckinghamshire country house Stoke Place Hotel, and coincides with the launch of the Group’s brand new website.
Recent developments have seen renowned chef Theo Randall open his first Theo’s Simple Italian restaurant in the Group’s Hotel Indigo Kensington and a rebrand of the Bellhouse Hotel in Beaconsfield to Crowne Plaza Gerrards Cross.
The next completed refurbishment and rebranding will be the Hotel Indigo Edinburgh Princes Street, which is due to open in June, 2016.
Having increased its staff to 2,300 from last year’s 2,000 figure and a strong UK-wide presence, the business also has plans to further grow employment throughout 2016, seeking and investing in talent from its headquarters in Newcastle upon Tyne.
Richard Warren, Cairn Group’s finance director said: “We are incredibly proud to work with our partners on a variety of exciting projects and would like to thank them for their continued support – as well as the hard work, diligence and effective approach is greatly appreciated.
“Our ethos as a company is to engage with local communities and invest in our dedicated workforce to be able to offer exceptional service to customers. It’s extremely rewarding to secure jobs, as well as establish new employment opportunities and search for rising stars in the industry – which HSBC and Mincoffs have enabled us to do even more rigorously.”
Anna Gregory, HSBC’s senior corporate banking manager for hotels, who acted as the lender in the deal, said: “Our experienced team provided a tailored refinancing package along with industry insight and guidance to support Cairn Group’s acquisition drive. The business’ success is testament to a well-executed strategy, underpinned by solid financial support, which will see the Group continue to build its hospitality and leisure portfolio.”
Tony Leech, HSBC’s area corporate director for the North East, added: “HSBC has been working with Cairn Group for over 15 years, so it has been very rewarding to see the company develop through our partnership. We look forward to continuing our longstanding relationship with the business and seeing the results of this funding package come to fruition.”
John Nicholson, corporate partner at Mincoffs Solicitors said: “We have acted for the Cairn Group for over 25 years. The facility represents the next part of the Group’s ongoing success story and I wish them well in their future plans.”
Over the past five years, the Group has spent over £40m acquiring and improving assets and doubled employee numbers in that period, establishing it as a leading player in the privately owned hotel owner and operator market.