In the largest single-asset hotel refinancing deal in Europe since the pandemic, Shiva Hotels has completed the landmark £300 million in new funding for its luxury Marylebone property, The BoTree.
The financing comes from BlueWater Capital, which provided a £170 million senior loan, and NorthWall Capital, which contributed a £140 million secured facility. The fresh capital refinances an existing loan with Cale Street Real Estate Partners and Crosstree Investments and will support the next phase of The BoTree’s expansion.
Planned upgrades include a rooftop swimming pool and bar lounge, a fitness and wellness space, private dining rooms and expanded meeting facilities.
“The BoTree’s location and future potential, coupled with the hotel sector’s continued growth, saw us generate interest from a deep pool of funders keen to support us on this transaction,” said Rishi Sachdev, CEO of Shiva Hotels. “We have remained patient, however, and have chosen two like-minded counterparties with the track record and expertise to support us on the next stage of our journey.”
Located at the intersection of Marylebone, Mayfair and Soho in London, The BoTree features 199 guestrooms and suites, a two-floor restaurant, bar and event spaces. The hotel was put up for sale in October 2024, after its lenders Cale Street Partners and CrossTree Real Estate sought to recover around £275 million they had lent against it. The hotel cost around £375 million to build and first opened doors in 2023.
Alexander Garnier, founding partner and portfolio manager at NorthWall, emphasized the deal’s significance in the evolving private credit market. “This partnership underscores NorthWall’s ability to deliver tailored capital solutions with speed and certainty. This transaction aligns with our strategy to finance top-tier businesses and assets, further reinforcing NorthWall’s leadership in the alternative credit market, amid increasing opportunities as banks scale back in private credit.”
With the refinancing secured, Shiva Hotels looks to strengthen its presence in the luxury hospitality sector.
