Zetland Capital secures funding to refinance two Marriott hotels

London-based private equity firm Zetland Capital has secured a £70m loan to refinance two Marriott-branded hotels in Manchester and Edinburgh.

The loan, provided by Leumi UK, will allow Zetland to refinance the 338-room Marriott Manchester and the 160-room Edinburgh Marriott Hotel Holyrood and has already seen the extensive refurbishment of the Edinburgh property. 

Ahmed Hamdani of Zetland Capital said: “In our second transaction together, Leumi UK’s support has been invaluable, showcasing deep expertise in the hotel sector and our investment strategy. These best-in-class assets, enhanced by our refurbishments, are well-positioned to thrive in Edinburgh and Manchester’s strong tourism and business travel markets.”

Liam Mullans, relationship director at Leumi UK, added: “This refinancing illustrates how we leverage our deep hospitality market expertise to deliver bespoke funding solutions for our clients, and act to ensure we are meeting their needs. The two assets have immense potential, and our ability to work hand-in-hand with Zetland Capital, was key to completing this deal.”

The loan marks the second transaction between the two parties, after Leumi UK provided a €51m facility to refinance the Morrison hotel in Dublin in 2023.

Zetland also has investments in 18-strong UK pub portfolio Portobello Starboard.