Octopus Property has provided a subsidiary of the BH Group, the established developer and operator, with a three-year, €9.4m (£8.1m) loan to refinance the newly developed Hotel Indigo Manchester, located in the city centre. This transaction represents the second time Octopus Property and BH Group have worked together.
The 187-bed hotel was completed in Q4 2018 and has a 20-year franchise agreement with global hospitality firm InterContinental Hotels. Situated opposite Manchester Victoria Station, the property benefits from its close proximity to a number of major Manchester landmarks including the Manchester Arena, the Arndale Shopping Centre, the Printworks entertainment venue and the National Football Museum. The hotel also features the Mamucium restaurant, run by the Head Chef Andrew Green, who moved from the Lowry Hotel in Manchester, where he achieved Double AA Rosette recognition and a mention in the 2018 Michelin Guide.
Nick Westoby, Fund Manager at Octopus Property, commented: “Working with repeat borrowers continues to be an important part of our philosophy, with the significant growth of Octopus Property in recent years built in part on leveraging our established client relationships. We are delighted to be lending again to the BH Group.”
James Houlston, BH Group, added: “We have been really pleased to be able to work with Octopus Property again on this refinancing. The development of the hotel has not been straightforward but it is now trading, and the reviews so far have been a reward for all the hard work. The Manchester hotel market is the second most mature in the UK behind London and the addition of the InterContinental franchise and the exciting new Mamucium Restaurant makes for exciting years ahead. This is our second loan with Octopus Property and its appetite and ability to understand both our intentions and the property fundamentals is refreshing. Octopus’ professionalism makes for invaluable reassurance to all parties involved and we very much look forward to completing future loans together.”