Edinburgh hotel operator going rural with £60 million funding lift

An Edinburgh-based hotel group has agreed a £60 million funding package as it looks to bolster its portfolio with hotels and resorts in more rural locations.
By Scott Reid
Published 1st Aug 2023, 13:06 BST
Updated 1st Aug 2023, 13:06 BST
The eight-figure package has helped to facilitate the recent purchase of the Pine Trees Hotel in Pitlochry and will support future acquisition opportunities and further expansion into the rural hotel market. Picture: Apex HotelsThe eight-figure package has helped to facilitate the recent purchase of the Pine Trees Hotel in Pitlochry and will support future acquisition opportunities and further expansion into the rural hotel market. Picture: Apex Hotels
The eight-figure package has helped to facilitate the recent purchase of the Pine Trees Hotel in Pitlochry and will support future acquisition opportunities and further expansion into the rural hotel market. Picture: Apex Hotels

Apex Hotels, which has establishments in Dundee, Edinburgh, Glasgow, Bath and London and recently acquired the Pine Trees Hotel in Pitlochry, has sealed the major refinancing package with Barclays. The bank financed the Pitlochry purchase as part of a wider agreement to support Apex’s growth and investment in its current portfolio, as well as future acquisition opportunities in the rural market. The recent sale of Apex London Wall Hotel is seen as a “positive move” to support the group’s ambitious growth plans over the next few years.

Apex Hotels was founded by Scottish entrepreneur Norman Springford who opened his first hotel in 1996, in Edinburgh’s historic Grassmarket. Since then, the group has grown into a major four-star hotel operator.

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Chief executive Angela Vickers said: “Barclays refinancing package as well as their hospitality industry expertise will help to accelerate our ambitious growth plans, not only to support continued investment in our existing city centre hotels, but to help us build a more diverse portfolio across rural and urban locations throughout the UK. Demand for high-quality hotels in the UK has never been stronger. The acquisition of Pine Trees Hotel kickstarts our growth strategy and the brand is perfectly positioned to capitalise on the tourism resurgence by putting guests at the heart of everything we do.”

Jamie Grant, managing director of Barclays Corporate Banking in Scotland, said: “Our hospitality and leisure expertise has meant that we have supported Apex Hotels with a high value finance package of £60m to help secure the purchase of Pine Trees Hotel.

“As hospitality and leisure operators continue to invest in property, acquiring new venues and in much needed environmental upgrades, tailored finance packages and relevant experience are key to giving clients what they need, with the added benefit of advice and introductions to relevant contacts. Our role is more than finance providers,” he added. “We are there as collaborators and partners to support our clients, helping inform decisions and achieve business opportunities.”

The Pine Trees deal team was led by Malcolm Crawford and Gordon McKean at Barclays Corporate Banking.

Related topics:EdinburghBarclaysGlasgowDundee

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