Sandman refinancing advances group’s growth plans
A hotel group has secured eight-figure refinancing to help fuel its ongoing growth.
Sandman Hotel Group as made a series of recent acquisitions to add to its core sites in Newcastle, Gatwick and Aberdeen, with further growth planned.
To help it achieve the next phase of growth, Sandman Hotel Group – a family-owned business hailing from Canada – has secured a new funding facility from HSBC. The Group is one of the largest privately owned hotel chains in North America – with more than 50 sites in Canada alone.
The United Kingdom and Ireland business – which has recently added to its portfolio Portmarnock Hotel & Golf Links in Ireland, as well as a newly acquired site in Sheffield – opened its first UK site in 2011 in Newcastle, having redeveloped part of the city’s iconic Scottish & Newcastle Brewery site into the Sandman Signature Newcastle Hotel.
It has since made significant investment into Gatwick and Aberdeen, and is now looking at the next phase of growth with renewed confidence following the huge challenges of the COVID-19 pandemic.
Company director and head of the United Kingdom and Ireland arm of the business, Mitch Gaglardi, said “Since our inception, we have worked fiercely on expansion plans for Sandman Hotel Group United Kingdom and Ireland. We are entirely committed to delivering incredible service for our guests and furthermore, creating job opportunities and contributing to the local communities our properties lie within.
“We’re delighted to announce this further investment and continued backing from HSBC and we’re looking forward to additional development across our United Kingdom and Ireland portfolio.
“The support from the team at HSBC has allowed us to move on with ambitious plans, and we’re pleased to already be seeing further success within the market. We’re a determined and hardworking company and this funding stream will allow us to fulfil the growth goals we have worked hard to lay the foundations for.”
“Sandman Hotel Group have been building their presence in the UK market since their first opening in 2011, and more recently have been acquisitive in their approach to expansion across the United Kingdom and Ireland,” said Alok Loomba.
“This new funding stream from HSBC will enable them to unlock the next phase of their growth, allowing Mitch and the team to explore options around the ongoing development of the group in the UK.
“We are very pleased our specialist banking and real estate finance teams could again support Sandman Hotel Group in a highly significant transaction within the leisure marketplace, which positions the business strongly to take advantage of further opportunities.”
Burges Salmon acted for HSBC in the transaction.