BoTree hotel secures £300m refinancing to avoid sale

The luxury BoTree hotel in London’s Marylebone has secured a refinancing package worth over £300m after being put up for sale last year.

The 199-room property, part of Shiva Hotels’ Place III group, cost around £375m to build and launched in 2023 with restaurants run by Hakkasan owner Tao Group Hospitality.

However, Shiva had to put the hotel on the market last year after its lenders, Cale Street Partners and Crosstree Real Estate, sought to recoup the roughly £275m they had lent against it, according to Bloomberg.

The sale has now been averted after the BoTree secured a £170m loan from Bluewater Capital and a £140m loan from NorthWall Capital.

This will allow Shiva to finish developing the hotel, including opening a rooftop swimming pool and bar lounge and a fitness and wellness space.

Private dining rooms and meeting spaces will also be launched in response to strong customer and corporate demand.

Rishi Sachdev, chief executive of Shiva Hotels, said: “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.

“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.”

The BoTree was built by EPR Architects, which has also worked on projects at the Rosewood London in Holborn and Sheraton Grand London Park Lane in Mayfair.