Lone Star Funds has secured a €41m loan from Cheyne Capital to help finance part of the restoration and redevelopment of a hotel in Belgium.
Lone Star, which acquired the Hotel Metropole in Brussels’ Place de Brouckère in 2022, will use the Cheyne financing to transform the asset into an upscale lifestyle destination.
The project is expected to be completed by the latter half of 2026.
Jean-Charles Prido, Cheyne real estate team member, said: “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.”
The latest deal builds on Lone Star and Cheyne’s partnership, following their previous collaborations which include Cheyne’s €81.5m loan in 2021 for Lone Star’s acquisition of French residential developer Green City Immobilier.
More recently, in 2023, Cheyne joined JP Morgan in providing a £780m (€928m) facility to refinance the Lone Star-backed UK urban regeneration project Quintain Wembley Park.
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