BNP Paribas provides €250m-plus Monaco hotel loan – exclusive

London & Regional has refinanced its Fairmont Monte Carlo hotel with the French bank.

BNP Paribas, the French corporate and investment bank, has provided more than €250 million of senior finance to UK-based private real estate investment company London & Regional Properties to refinance the four-star Fairmont Monte Carlo hotel in Monaco, Real Estate Capital has learned.

The hotel, which overlooks the famous hairpin bend that forms part of the Monaco Grand Prix racetrack, is considered one of the prize assets within London & Regional’s hotel portfolio, which also includes city hotels in locations including London, Barcelona, Los Angeles and Miami. London & Regional is owned by brothers Richard and Ian Livingstone, both executive chairmen of the company.

BNP Paribas’s London-based real estate finance team, which is led by Romain Simon, arranged the financing. The bank is the sole lender in the deal.

The Fairmont Monte Carlo is the largest hotel in the micro-state, located on the French Riviera, with more than 600 rooms. Leisure space within the hotel is occupied by restaurants including Nobu and Nikki Beach.

Several European banks have demonstrated an appetite to provide finance against high-end hotels in the last 12 months. In June, BNP Paribas’s French banking peer, Natixis, partnered with Cheyne Capital to finance luxury hotel owner LHC’s €154 million acquisition of the Château La Messardière hotel in Saint-Tropez on the French Riviera.

In March, another French bank, Société Générale, was sole underwriter of a £615 million (€670 million) acquisition financing of four Grange hotels in London. The hotels were bought by London-based investor Queensgate Investments in the same month in a deal reported to be worth around £1 billion.

In November 2018, Germany’s Aareal Bank provided €447 million to Swedish company Pandox to finance 14 hotels located across Austria, Belgium, Germany and the Netherlands.