Hotel investment during the pandemic
With rumblings from the UK government about how long it will take to carry out the Covid-19 vaccination programme and the knock on effect of 'getting back to normal' particularly in the leisure and retail sectors. it was interesting to see the announcement this week about the £68.5 million of of fresh funding secured by Dominvs Group for the development of a new Hampton by Hilton hotel in London's Aldgate and the Courtyard by Marriott hotel in Oxford.
Dominvus Group highlights that the successful raising of funds for both projects reflects the firm's good banking relationships (£48 million from Coutts and £20.5 million from Clydesdale Bank Plc) and confidence in the group's development and operational capabilities, alongside raising optimism in the UK hotel industry after the start of Covid-19 vaccination programme in the UK.
The new five storey Hampton by Hilton London will comprise the refurbishment of the existing hotel plus a new-build extension , with the construction undertaken by leading contractor McAleer and Rushe. The hotel is located in the heart of East London by Brick Lane, an area undergoing significant investment from Tower Hamlets Council, and just five minutes from the City of London.
Located in the historic centre of Oxford, close to the world famous Oxford University buildings and libraries, the Courtyard by Marriott Oxford City Centre hotel is situated at 15 Paradise Street overlooking the Castle Mill Stream canal on both sides. The hotel was completed in July 2019, with an 11-room extension opened in January 2020.
The six-storey hotel has a red-brick and glass facade with rooms and suites overlooking the canal and the ruins of Oxford Castle's St George's Tower. Alongside the Kitchen and Bar Restaurant and the lounge areas the hotel has a spectacular rooftop cocktail bar and garden/terrace offering panoramic 360 degree views over Oxford's spires, domes and landmarks.
Dominvus Group stated that by May 2021 the UK Government forecast that a third of the UK's 66 million population will have been vaccinated against Covid-19 and by summer 2021 around 50% of the population should be immunised, and international flights and tourism should start to recover. The vaccination of the entire UK population is estimated to take up to 12 months with 'normality' returning by November 2021.
Preeptal Ahluwalia, Director of Domivus Group said:
'It is excellent to see confidence in the hotel industry returning and these two hotels are well placed to benefit from the gradual return of both domestic and overseas visitors to London and Oxford, two of the UK's most popular tourist and business trip hotspots and destinations of increasing hotel need.'