The five-star BoTree hotel, a new luxury establishment in London, UK, will be up for sale following unsuccessful £275m ($356.47m) refinancing attempts, reported Bloomberg News.
Jones Lang LaSalle (JLL) has been tasked with marketing the hotel on Marylebone Lane, according to people familiar with the matter.
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The 199-room property represents an investment by Shiva Hotels Group, now known as Place III Hotels, with construction costs totalling £375m.
Originally acquired for nearly £100m in 2016 by Shiva Hotels Group, the hotel has faced challenges due to the Covid-19 pandemic and subsequent increasing interest rates impacting its interest coverage ratios.
JLL’s mandate to refinance the BoTree hotel, along with Shiva’s Soho project at Brickmakers Yard, emerged late last year.
The refinancing terms sought £316.5m to repay BoTree’s £275m of outstanding debt, with an additional £12m allocated for the completion of the hotel’s eighth and ninth floors, as per a prospectus of Bloomberg News.
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By GlobalDataThe BoTree hotel has the potential to expand to 219 rooms upon completion of the upper floors. It features three bars, two restaurants, a late-night private hire party venue for VIPs, and a terrace with a pool.
In a separate development, as part of a refinancing agreement, HIG Capital, which provided finance for two additional Shiva properties in London, has acquired equity stakes in them, Bloomberg News reported in February.
In June 2023, the BoTree hotel entered a partnership with Tao Group Hospitality, a US-based restaurant and nightclub operator, to oversee its dining outlets.
