Leumi UK provides Zetland Capital with £70m loan to refinance Marriott hotel portfolio

By Bridging Loan Directory 6th February 2025

Specialist real estate lender Leumi UK has completed a £70m loan to funds managed by Zetland Capital to refinance two four-star Marriott hotels in Manchester and Edinburgh.

This is the second transaction within this partnership after Leumi UK provided a €51 million facility to refinance the Morrison Hotel in Dublin in 2023.

The Marriott Manchester is located in the centre of the city and has 338 rooms across seven floors, as well as 12 events spaces and extensive amenities including a health & fitness suite, business centre, and bar / lounge.

It is the largest four-star hotel and newest Marriott branded property in the city.

The Edinburgh Marriott Hotel Holyrood, which is similarly centrally located, has 160 rooms across six floors, and is well amenitised with a large conference area, spa, gym, and pool.

Following the acquisition of the hotel by funds managed by Zetland Capital, the asset has been extensively refurbished.

Benefitting from the strength of the Marriott brand, prime locations, and the global appeal of each respective city, the two assets are positively positioned to deliver strong performance.

The transaction highlights Leumi UK’s customer-centric approach and commitment to delivering bespoke funding solutions, as the two parties closely collaborated to finalise a funding structure tailored to the client’s specific needs.

Ahmed Hamdani at Zetland Capital, said:

“In our second transaction together, Leumi UK’s support has been invaluable, showcasing deep expertise in the hotel sector and our investment strategy.

These best-in-class assets, enhanced by our refurbishments, are well-positioned to thrive in Edinburgh and Manchester’s strong tourism and business travel markets.”

Liam Mullans, Relationship Director at Leumi UK, commented:

“This refinancing illustrates how we leverage our deep hospitality market expertise to deliver bespoke funding solutions for our clients, and act to ensure we are meeting their needs.

The two assets have immense potential, and our ability to work hand-in-hand with Zetland Capital, was key to completing this deal.”