Imagery courtesy of JMK Group.
The UK’s JMK Group has been given the green light for a £15 million loan to fund developments at a pair of its west London hotels.
OakNorth Bank approved the funding, which the hotel group will now use to buy out the freehold of its Seraphine hotels in Kensington and Hammersmith.
Luxury boutique plan
The capital will also support the upgrading of its Seraphine Olympia hotel in Kensington, which will include refurbishing the hotel’s 40 existing rooms, turning it into a luxury boutique hotel.
JMK has submitted the planning and intends to work with the local council and surrounding members to deliver a world class hotel, aimed at enhancing guest experience and releasing the full potential of the asset.
Freehold spur
The group’s virtual freehold purchase of additional space at the current Seraphine Olympia site is spurring its redevelopment, according to director, Zain Kajani: “We have recently acquired the virtual freehold of 229-231 Kensington High Street by converting the short lease of the property to a ‘999 year’ lease. This has made the entire Kensington asset in the portfolio freehold.
“The asset is a quality zone one real estate piece which has great potential being superbly located in the heart of central London. We are looking at a range of asset management options and will redevelop the hotel to offer a better guest experience.”
Constantly current strategy
Kajani continued: “The hospitality market is ever-changing, so as a future-orientated company, we are always looking forward and regularly review our business strategy to ensure we’re staying on top of emerging trends and customer expectations.
“The freehold buyouts and upgrades to Seraphine Olympia are prime examples of this, so we’re grateful to the OakNorth Bank team for their support in this transaction. We had a funding experience in the past with another bank where we waited six months for them to come back to us with a ‘no’, so to work with a lender that moves quickly and transparently was a very refreshing experience. We were at Credit Committee about three weeks after we met the team for the first time, which is pretty incredible.”
Right terms
Hilton Foster, director of debt finance at OakNorth Bank, added: “JMK is an incredibly strong family business with ambitious plans for the future. The freehold buyout was a sensitive and complex negotiation that required a lender who understands the market and could work with JMK to get the deal done under the right terms. We are excited to continue supporting the group with its future growth, in particular acquisitions of new assets to build its portfolio.”
Currently, the TOPHOTELPROJECTS database lists six projects JMK is involved with across the UK and Ireland, including dual development Aloft Hamilton Dock Hotel and Residence Inn Hamilton Dock Hotel in Belfast, in partnership with Marriott International. Both hotels are due to complete in 2024.
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What started in 2009 as a single 21-bedroom hotel in London has since grown into an extensive portfolio of hotels, properties and coffee houses known as the JMK Group.
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