The Resident owner secures refinancing to fund expansion

The majority owner of The Resident hotel group, Mactaggart Family and Partners, has refinanced with NatWest in order to focus on expansion through further development projects and acquisitions. According to the company, there is increasing opportunity in the market for growth through management contracts. The five-year loan agreement saw MF&P refinance their freehold owned, operational assets in Covent Garden, Kensington, Liverpool and Soho with a £55m debt facility. The news comes as MF&P last year announced the sixth Resident location, with a new site in Edinburgh due to open in 2024. In addition to further developments, JVs and acquisitions, the brand has plans to add rooms through management contracts, with a total target of 1,500 to 2,000 rooms over the next seven years. William Laxton, CEO of MF&P, said: “I am delighted that we have reaffirmed our successful relationship with NatWest with a perfectly fit-for-purpose senior financing that allows us to concentrate on the growth of the business, which is developing into one of our major strategies. “The Resident model delivers a highly-rated, revenue driving product which, through features such as limited F&B, has simplified and lower risk operations that convert through to EBITDA very efficiently.” David Orr, CEO of Resident Hotels, said: “The strength of the reputation of The Resident brand, which recovered its performance faster than peers following the lifting of pandemic restrictions, was a strong verifiable positive as the refi was negotiated.” Anthony Say, head of hotels at NatWest Corporate Banking, added: “We are delighted to continue supporting this high-quality hotel investor, developer, operator and brand. “One of the attractions of The Resident is the support it gives its teams, which promotes valuable high retention rates and delivers the guest service which drives important loyalty. We look forward to continuing to support The Resident’s ambitions in the future.”