OakNorth Bank completes £4.8m loan to private equity-backed boutique hotel brand, House of Gods, to open new hotels in Manchester and Glasgow

  • Founded by brothers Mike and Ross Baxter in September 2019, House of Gods Hotel in Edinburgh was named Sunday Times Best Hotel in Scotland 2020[1];
  • In February 2021 the business secured a £5m investment from IMBIBA, the specialist operator-led leisure and hospitality sector investor, to expand the brand;
  • This, coupled with the capital from OakNorth Bank, will support the expansion of the House of Gods brand with two new boutique hotels in Manchester and Glasgow and the launch of the Edinburgh Hotels new restaurant Casablanca Cocktail Club.

 

OakNorth Bank – the UK bank for entrepreneurs, by entrepreneurs – has provided a £4.8m  loan to returning client, House of Gods Hotels, the boutique accommodation business.

 

Founded by brothers Mike and Ross Baxter, House of Gods Hotel in Edinburgh was partially funded via a £1.1m loan from OakNorth Bank in 2019.

 

The £4.8m capital from OakNorth Bank, coupled with the £5m IMBIBA investment, will be used to  further expand the House of Gods brand, with two new 4 star boutique hotels in Glasgow and Manchester. Like their Edinburgh counterpart, the new editions to the portfolio will attract tourists and locals alike with luxurious decor and intimate cocktail bars.

 

Mike and Ross Baxter, Co-founders of House of Gods Hotel said: “We’re very excited to be expanding the brand. The Edinburgh Hotel has been incredibly well received and we feel both Glasgow and Manchester are the perfect locations for the two new hotels. Its been a challenging year for the industry but with the support of Mohith and his team at OakNorth Bank, the business has traded very well and found opportunity in two fantastic new sites. OakNorth Bank have been incredibly supportive over the last year, behaving as a true partner, rather than a bank. We’re grateful for their ongoing support and belief in the long term potential of our business.”

 

Mohith Sondhi, Senior Debt Finance Director at OakNorth Bank, added: “Prior to COVID-19, The House of Gods hotel in Edinburgh had been trading extremely well. When hotels were allowed to re-open in late April this year, it achieved 90% occupancy in May and 95% occupancy in June – a clear demonstration of the demand for this unique hotel concept. We want to ensure the business has the capital it needs to not only take advantage of the demand when all restrictions end next month, but to also maximise opportunities to continue growing the brand in the meantime. Since our last loan to the business in 2019, Mike and Ross have beefed up the senior management team with two excellent hires and have secured investment from one of the leading investors in this space. It is businesses like House of Gods Hotel that will play a vital role in the UK’s post-pandemic economic recovery, so it is essential they get the support they need to not only survive, but also thrive.”

 

ENDS

 

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 wordpress-test-website.oaknorth-it.com for more information.

Contact

Tom Pavey-Smith, Associate Director – Growth & Communications: tom.pavey-smith@oaknorth.co.uk  / 0791 716 5588

[1] IMBIBAThis month, House of Gods was named as winner of the prestigious Sunday Times Award for the Best Hotel in Scotland 2020.

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