OakNorth Bank completes £1.1m loan for launch of a new boutique hotel brand

By Bridging Loan Directory 28th October 2019

OakNorth Bank – the UK bank powered by OakNorth, has provided a £1.1m facility to BXTR Ltd, the boutique accommodation business founded in 2014 by brothers Mike and Ross Baxter. The finance will be used to launch a new boutique hotel brand – House of Gods – which they hope to grow to five sites over the next three years.

The brothers will start with a new 22-bedroom four-star boutique hotel in Edinburgh – a city they know well given it is the home of their first project: the 46-bedroom Baxter Hostel. The new hotel will be located only 200 yards away from the city’s Royal Mile and close to Waverly train station. Aimed at tourists and those working in the tech and start-up sector, the hotel will also offer a 40-cover cocktail bar inspired by Rock n’ Rolls bohemian past, with a cocktail menu that rekindles fables of the most infamous hotel hedonism and debauchery. Adjacent to this, the brothers will be developing the Cowgate Market a 70 cover Hawker style Restaurant & Bar which will specialise in cocktails, late night food, live music and DJ’s.

Founded by experienced hoteliers and brothers Mike and Ross Baxter, BXTR launched in August 2014 with a 46-bedroom hostel in Edinburgh. Following the success of this first site, the brothers launched a 105-bedroom Kip Hotel in East London. Both venues continue to see above-market occupancy rates which is why Mike and Ross have decided to launch a new brand, which they hope to grow to several sites by 2022.

Mike and Ross Baxter, Co-founders of BXTR said:

“We’re extremely excited to be launching our new hotel, restaurant & bar concept and feel this very popular area of Edinburgh will be the ideal location for both sites to thrive. As well as attracting millions of tourists every year, Edinburgh is the largest financial centre outside of London and hosts hundreds of international conferences throughout the year, making it a very popular destination for business trips and holidays.

“Mohith and the team at OakNorth Bank were incredibly supportive throughout the process, ensuring we were kept in the loop and that any queries we had were quickly addressed. They have a thorough understanding of the hotel sector and share our entrepreneurial drive and ambition.”

Mohith Sondhi, Senior Debt Finance Director at OakNorth Bank, added:

“Over the last five years since the launch of their first project, the Baxter brothers have proven they can successfully operate both hotels and hostels with their two existing sites experiencing above-market occupancy rates year-round. Edinburgh is a city they know well, and the central location of the site will make it popular for tourists and locals alike. They have ambitious plans for the future, so we look forward to supporting them as they continue to expand the brand across the UK.”