Inn Collection Group secures £42m loan to support growth
The 26-strong Inn Collection Group has secured a £42m loan to refurbish 13 of its sites and support the continued redevelopment of its property portfolio.
Refurbishments of the group's Black Swan in Helmsley and Pheasant Inn in Bassenthwaite have already been funded through the capital, provided by OakNorth Bank, and the venues have reopened.
Established in 2006, Inn Collection Group is backed by British private equity firm Alchemy Partners.
In 2019, with equity capital from Alchemy and debt capital from OakNorth Bank, the business set out to grow from 271 rooms across nine sites to almost 900 rooms across 21 sites by 2022. It has since grown to more than 1,000 rooms across 26 sites, with further plans to capitalise on the staycation trend.
Sean Donkin, managing director of Inn Collection Group, said: "Covid has of course been hugely challenging for the sector, but as with any good business, we've tried to find opportunity in times of turmoil. That is why we are keen to continue developing our portfolio with sites that fit with our proposition of providing high-quality accommodation, service, food and beverages."
Stuart Blair, debt finance director at OakNorth Bank, added: "With more than 19 years experienced in the hospitality sector, Sean has an outstanding track record, and over the last 18 months, has bolstered management with both a CFO and operations director.
"This has evidently yielded results both in terms of positive trading at all new sites – a clear indication of strong site selection – but also in the group's ability to acquire quality sites throughout Covid at competitive entry prices."
