This transaction demonstrates that we are willing to support good quality hotel development projects in these economically challenging times. The facilities we have provided will enable Sophie and the team to achieve their expansion ambitions in the East of England, providing affordable accommodation to meet customer demands.
(PRWeb UK) February 12, 2010
King Sturge’s Hotels and Leisure team conducted the feasibility study, facilitated development planning, brought in the InterContinental Hotels Group and secured £5 million debt finance from The Royal Bank of Scotland for the development of a new Holiday Inn Express near Cambridge. Construction of the hotel is due to start imminently and the hotel is scheduled to open in August 2010.
The two-year process was initiated when the owners of the Red Lion public house were looking for a strategic approach to grow revenues and outsource the management of the business. King Sturge proposed building a budget hotel adjacent to the existing pub to create additional business. The feasibility study confirmed the opportunity and showed a very solid business case. The InterContinental Hotels Group was approached by King Sturge and came on board with the Holiday Inn Express brand.
Gaining planning for the development was a complex process as the impact on the grade 2 listed historic building that is the Red Lion had to be assessed and mitigated. The planning authority recognised the positive economic impact the development would have on the surrounding area.
King Sturge was instrumental in securing debt financing of just under £5 million for the development with The Royal Bank of Scotland.
Peter Gee, Partner, King Sturge Hotels and Leisure commented: "This deal shows how hotel development can take place in these economically difficult times, by sharing risk between all parties concerned".
Sophie Gregorios (Red Lion) added: "We are delighted to go ahead with this development. King Sturge, The Royal Bank of Scotland and our Main Contractor, Bowmer and Kirkland (London) Limited have all been integral in making this happen and we look forward to opening the hotel".
Richard Arman from the InterContinental Hotels Group says: "We’re excited by the possibility of adding this hotel to the portfolio of Holiday Inn Express throughout the UK."
Jon Colley from The Royal Bank of Scotland comments: “This transaction demonstrates that we are willing to support good quality hotel development projects in these economically challenging times. The facilities we have provided will enable Sophie and the team to achieve their expansion ambitions in the East of England, providing affordable accommodation to meet customer demands.”
Notes to Editor:
King Sturge is one of the largest international property consultancies in Europe. In the UK King Sturge owns 22 offices and in Continental Europe it operates 20 offices in 13 countries. Together they form part a worldwide network of over 215 wholly owned and associate offices in 47 countries. Over 3,800 staff throughout these offices cover all property sectors and specialisms including plant and machinery, and residential.
In Europe, King Sturge operates in the major UK commercial centres and principal mainland European cities. In Asia Pacific, the firm has associations in Australia, Indonesia, Malaysia and New Zealand. In the Americas, King Sturge has business partners in North, Central and South America through King Sturge CORFAC International and ChainLinks Retail Advisors.
Through a joint venture with a wealth manager, King Sturge now has a presence in the Middle East. The office will initially be based in Dubai, concentrating on states in the Gulf Corporation Council: Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates.
For further information please contact:
Régis Jacquemin, Corporate Communications Manager +44 (0) 20 7087 5120
+44 (0) 7791 019 341
Margreet Papamichael, Associate Hotels and Leisure Consultancy +44 (0) 20 7087 5914
+44 (0) 7973 347 843
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