Qbic Hotels secures development financing in Manchester
JLL Hotels & Hospitality Debt Advisory team has advised Qbic Hotels on the development finance facility secured from Clydesdale Bank
The development finance facility will be used to convert John Dalton House in Manchester from office space to a 261-room hotel. This new Manchester site will be Qbic’s second UK site, and the hotel will open in 2020. It is the first new Qbic location since Cerberus acquired the business.
A disruptor in the hotel space, Qbic utilises clever, affordable and fully integrated design, combined with sustainable and environmentally friendly solutions. The innovative build process of a Qbic hotel also contributes towards the environment by reducing construction time whilst making use of primarily recycled materials. Qbic’s patented modular technique means the hotel room shell can be transformed to a fully functioning room in three hours.
Paul Lewis, CFO at Qbic, added: “We are delighted to have completed this development financing with Clydesdale. Their support gives us the opportunity to expand our eco-friendly, design-led and affordable brand proposition to another exciting location in the vibrant city of Manchester.”
Stephen Barr, director, Hotels & Hospitality Debt Advisory at JLL, comments: “Combining Cerberus’ substantial experience in the global hospitality sector with Qbic’s exciting growth projections provides the perfect grounding to scale up the Qbic platform and portfolio. We were delighted to support Qbic and Cerberus on the first stage of this expansion across Europe.”
Neil Harley, senior director at Clydesdale Bank, Hotels, comments: “Qbic Manchester will occupy a highly prominent site on the corner of John Dalton Street and Deansgate in the heart of one of regional UK's strongest hotel markets. The prime location and Qbic's differentiated product offering are a compelling combination and one that fits very well with Clydesdale Bank's specialist Hotel Finance offering. We are looking forward to working with the Qbic team to support the development and subsequent trading of the hotel.”
Qbic were advised by BCLP and Clydesdale by DLA Piper. Savills provided valuation services and Christies & Co the feasibility analysis.