This represents the second loan that OakNorth has provided for The Inn Collection Group after the bank supplied funds in June 2018 that the company used to expand its portfolio to nine sites across Northumberland, County Durham and Teesside.
The operator’s ninth site, the Waterhead Hotel – The Inn Collection Group’s first site in the Lake District, was purchased in September 2018.
The Inn Collection group, which has since been sold to Alchemy Partners, now hopes to use £10m worth of additional funds, and financial support from Alchemy, to expand to 21 sites by 2022.
The Inn Collection Group’s managing director Sean Donkin commented: “It has been an incredible 12 months for The Inn Collection Group. We’ve secured backing from one of the UK’s most reputable private equity firms and have successfully secured two loans from OakNorth, a bank that prides itself on the high quality of its loan book.
“As we look ahead to the future, we are keen to continue building our portfolio with sites that fit our proposition of providing high-quality accommodation, service, food and beverages, and are delighted to have the support of both OakNorth and Alchemy Partners to help us achieve this.”
The Inn Collection Group announced in November that it had appointed the co-founder and former CFO of the 26-hotel group QHotels Ian Goulding as its new chairman as part of its plans for expansion.
OakNorth debt finance director Stuart Blair added: “The north-east experienced record-breaking levels of tourism in 2018, according to figures from Visit England.
“The number of visitors was up across all the Northern Powerhouse regions, but the north-east, where most of The Inn Collection Group’s sites are based, recorded the largest rises.
“The fact that the group has managed to secure backing from such an established private equity firm as Alchemy Partners, speaks to the quality of the management team and their ambitious and strategic future growth plans.
“We were delighted when they returned to us for a second loan and look forward to working with the group on their continued expansion in the future.
“Last year, we announced plans to hire three lending directors who will be based out of our Manchester office, specifically because we’re seeing more demand from businesses in the north of England.”
As reported by The Morning Advertiser, The Inn Collection Group recently teamed up with The Abbeyfield Society and Age UK Durham to tackle social isolation in the elderly population by hosting 100 older people who live alone in the north-east to a free Christmas lunch and party.