Z Hotels, the compact luxury hotel group, has announced plans to expand its property in London's Piccadilly district. With a new £15 million loan from OakNorth Bank, Z Hotels aims to refinance existing debt and support future growth ambitions.
The expansion project involves the addition of 20 rooms, bringing the total number of rooms at the Piccadilly Hotel to 132. In addition, the hotel will offer a new café concept on the first floor and improvements to the elevators.
Founded by Bev King, former COO of Thistle Hotels, Z Hotels opened its first property in Soho in 2011 and has since expanded to operate 14 properties in London, Liverpool, Bath and Glasgow. The group's concept is to offer affordable luxury rooms and services.
Z Hotels' strategic decision to expand its Piccadilly property reflects the company's commitment to enhancing its offering and meeting the growing demand for affordable, centrally located luxury accommodation. With the new OakNorth facility, Z Hotels can work closely with its team, facilitating the continued growth and development of the brand across the UK, while expanding the Piccadilly site.
"Since our launch 12 years ago, our brand objective has remained very simple: to offer consumers a chain of centrally located hotels with reasonable rates, sleek modern designs and high-quality amenities. OakNorth has supported us in multiple transactions, and we consider them our trusted financial partner, having worked closely with us through the difficult times of the pandemic and the current cost-of-living crisis. With this new funding from OakNorth, we're getting closer to its team and looking forward to continuing to develop the Z Hotels brand in the UK, while expanding our Piccadilly site."- Bev King, CEO of Z Hotels
"Z Hotels' unique proposition has enabled it to build a large and diverse portfolio in a relatively short space of time and achieve incredibly high occupancy rates throughout the year.The focus on room quality and guest experience is demonstrated by 99% sales, five-star reviews and an average occupancy rate of 96% across all hotels. In addition, Z Hotel's resilience to the bird flu pandemic has been exceptional, with the company now exceeding pre-bird flu business levels." - Deepesh Thakrar, Senior Director of Debt Finane at OakNorth