Lamington Group has secured a pioneering green loan to support the development of its next pipeline project, Room2 York.
The GBP19 million loan has been provided with support from bank Coutts Commercial. As a green loan, it acknowledges Lamington’s progress in developing low carbon projects. Typically, green loans attract a modest discount on interest, when compared with regular funding, and are offered by lenders keen to adhere to strict environmental responsibility standards.
A commitment to carbon reduction
As it has built its Room2 aparthotel brand up in the UK, Lamington has taken a lead in decarbonising its properties. The approach the group takes runs right through its projects, from top to bottom, impacting suppliers and business partners. One demonstration of that commitment is that Lamington has achieved the coveted B Corp certification, acknowledging its leadership in tackling environmental, social and governance principles.
“As a BCorp, Lamington Group is very selective about its supply chain and partners, so it is a great pleasure to be partnering with Coutts,” said Stuart Godwin, Lamington managing director. “This loan package will deliver the design-led, customer-centric product room2 Hometel in York and enable further sites to be brought into our net-zero pipeline.”
As well as the green loan, Lamington has also arranged a GBP22.75 million investment loan, using the group’s Chiswick hotel as security. The funds will support the existing development programme as well as allowing headroom for further site acquisitions.
Remaining a family-owned business, Lamington Group dates back to the 1960s, and has a number of apartment properties as well as the growing Room2 brand. The group created the word “hometel” to define its approach for Room2, aiming to pull together the best elements of a hotel, while delivering a guest experience more akin to home.
In 2021, Lamington published its net zero roadmap. With that came a commitment to whole life net zero standards for any new properties in the years ahead. The company led the way with the development of its Chiswick hotel in west London, testing many trailblazing features within the building to drive down energy use, and reduce embedded carbon in the property.
The York Room2 property will be the brand’s first destination in the north of England. It will feature 116 rooms, each designed for long stay as well as short stay guests, plus meeting spaces, laundry facilities, plus a cafe and bar that will major on locally sourced food and drink.
Harnessing solar power
The hotel is expected to open in 2027, and will be designed around Lamington’s net zero philosophy, with its own power generated from solar panels on the roof. The property will be fully electric, featuring ventilation systems triggered by internal CO2 levels, plus a wastewater system that will recover heat. Reclaimed timber will be used as a flooring material, and interiors will also include recycled textiles.
In addition to the York property, Room2 sites have already been secured in Cambridge, Liverpool, and Manchester. It was in summer 2025 that Lamington agreed a 250 year lease on Shire Hall, a block of former county council offices in Cambridge, preparing the way for Room2 Cambridge.
