Cheyne Capital, the global alternative investment manager, announces the closing of a €41m loan to finance part of the restoration and redevelopment of the iconic Hotel Metropole in Brussels into a premier lifestyle destination.
Situated in Place de Brouckère, the historic property, which was acquired by private equity firm Lone Star Funds in 2022, will be transformed into an upscale lifestyle hotel. The City of Brussels is supportive of the project, which will reinforce the building’s status as a flagship destination in the city.
Once complete, the hotel will cater to both short-term visitors and extended-stay guests, with 267 rooms. The renovation will include the addition of premium amenities, such as an indoor swimming pool, a fitness room, and the much-anticipated reopening of the prestigious Café Métropole. Works are expected to complete in the second half of 2026.
The redevelopment places a strong emphasis on sustainability, reflecting Cheyne Capital’s commitment to responsible investments. Upon completion, the hotel is expected to be CRREM-aligned and achieve a BREEAM “Very Good” rating. The project demonstrates best practices in repositioning an old, energy-inefficient building to the latest environmental standards, whilst preserving historic features.
Jean-Charles Prido at Cheyne Real Estate, commented: “We continue to have strong conviction and appetite for the European hotel market, as recent performance demonstrates both its resilience and growth. This transaction underscores Cheyne Capital’s commitment to financing sustainable real estate projects while accompanying leading sponsors such as Lone Star.”
This transaction marks another collaboration between Lone Star and Cheyne Capital. In 2021, Cheyne Capital provided an €81.5 million loan backing Lone Star’s majority acquisition of Green City Immobilier, a leading residential developer headquartered in Toulouse, France. Cheyne Capital’s track record of financing sustainable real estate projects also includes the €895m (£780m) facility provided alongside J.P. Morgan in 2023 to refinance the Lone Star-backed Quintain Wembley Park, one of the UK’s largest urban regeneration projects.
