OakNorth Bank – the UK bank for entrepreneurs, by entrepreneurs – has provided a £1.7M loan to HY Hotel, a 5-star aparthotel in Lancashire that’s been providing accommodation to NHS and key workers throughout the pandemic.
Launched in December 2019, HY Hotel was previously The Ashton Park Hotel, which closed in 2018, and was also known locally as The Langdales Hotel. Its reopening created 20 jobs but when the pandemic hit, the hotel like much of the hospitality industry, was forced to close to the general public. Rather than having rooms remain empty and unused, the entrepreneurial team led by Dan Yates decided to provide heavily discounted rates on apartments to all NHS staff and any key workers traveling for work. Additionally, the hotel provided vital accommodation at a heavily reduced rate to those shielding or unable to stay at home due to high-risk family members. The self-contained apartments are fully equipped with kitchen and laundry facilities, making them well-suited for the COVID climate.
During the summer months last year when the UK came out of lockdown and the hotel was able to re-open to the general public, it experienced 100% occupancy, benefitting from Brits opting for staycations rather than travelling abroad. This is a trend that will likely re-occur this year as international travel will remain restricted until vaccines have been more widely administered. HY Hotel is well-positioned to take advantage of this trend, offering 35 luxury one and two-bedroom apartments, as well as a gym, pool, Jacuzzi, sauna, coffee lounge, on-site shop and gin bar.
Dan Yates, co-founder of HY Hotels, said: “We were so excited to open in December 2019, so to be forced to close only a few months later was incredibly disheartening for the whole team. However, we didn’t let that dampen our spirits – we pivoted the business so that we could remain open whilst also doing our bit for the local community. The occupancy we saw during the summer months have only strengthened our determination to stay open and ensure we not only survive through this crisis, but thrive through it. We’re grateful to the team at OakNorth Bank who through providing this finance, have helped ensure HY Hotel has the ability to reach its full potential in the future and take advantage of the re-opening of hotels later this month.”
Stewart Haworth, Debt Finance Director at OakNorth Bank, commented: “Hy Hotel initially assisted public sector workers in the first lockdown, and with the two subsequent lockdowns, its unique offering became essential to the local community. Rather than temporarily closing, Dan and his team thought about what they could do to help whilst also preserving jobs. It is entrepreneurial and resilient businesses like these that will play a vital role in the post-pandemic economic recovery, so it’s essential that they get the funding they need. We’re glad to have been able to support the business, helping to shore up its future and ensure it’s in a strong position to take advantage of the summer staycation boom.”
Notes to editors
About OakNorth Bank plc
Launched in September 2015 and founded by entrepreneurs, OakNorth Bank provides fast, flexible and accessible debt finance to the UK’s Missing Middle.
It has borrowers across a variety of sectors, including: healthcare (nursing homes and retirement villages), consumer goods, vehicle and parts manufacturing, capital goods manufacturing, household professional services (including educational services), nurseries, business support services, hospitality and recreation (including hotels, resorts, restaurants and bars, fast food outlets and limited service restaurants), SME residential and commercial property development and investment.
It is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.
Visit www.oaknorth.co.uk for more information.
Valentina Kristensen, Director – Growth & Communications: email@example.com / 0757 234 9009