Pbb backs luxury London hotel with £85m loan

Pbb Deutsche Pfandbriefbank has written an £85 million loan to refinance a five-star hotel located in the City of London.

The German bank has provided the loan to Obidos Properties to refinance the Mountcalm Royal London House Hotel in Finsbury Square.

The conversion of the former Royal London House headquarters building into a hotel was completed earlier this year. The hotel opened to guests in October.

The Montcalm Royal London House, contains 253 rooms across 10 floors and includes restaurants and bars at ground floor level and a rooftop bar. The operator, Mountcalm Hotels Group is a private luxury hotel chain with a growing presence in central London. The Royal London House is Montcalm’s sixth in London and it plans to operate the hotel on a long-term basis.

Pbb said that the transaction closed in December 2016.

“We are delighted to have closed this loan in pursuit of our judicious hotel lending strategy. Well-located, well-managed hotels in Central London remain an attractive asset class and opportunities of this type sit comfortably within our lending criteria,” said Charles Balch, head of real estate finance for international clients, UK & CEE at pbb Deutsche Pfandbriefbank.