ESR Europe closes €180m loan for London’s Corus Hyde Park Hotel

This loan will allow Malayan United Industries (MUI), the hotel's owner, to repay existing debts and renovate the property. The property is expected to become a four-star international hotel brand after the refurbishment.

The 388-key hotel is located in the Hyde Park neighbourhood of London, within walking distance of Lancaster Gate, and close to numerous travel links and shopping streets.

The Corus Hyde Park Hotel has seen a significant improvement, with occupancy rates jumping from 39% in 2022 to 60% in 2023. However, it faces stiff competition from new properties offering modern amenities and luxury at similar prices. The renovation is expected to significantly boost both room rates and occupancy levels, with forecasts showing occupancy exceeding 80%, resulting in a substantial increase in net operating profit.

George Cotterell, managing director, Debt Investments at ESR Europe, commented: ‘The current market continues to provide attractive investment opportunities, especially for refinancings as traditional lenders look to exit legacy positions. This transaction demonstrates our commitment to supporting value-add sponsor business plans, secured against high-quality real estate with strong underlying fundamentals.’

Paul House, co-head of Debt Investments at ESR Europe, added: ‘We are delighted to support the MUI Group with this transaction, marking another milestone in our over 10-year track record of deploying our investors' capital into high-quality debt investment opportunities.’

David Yeadon of SPF Private Clients’ debt advisory team and introducer of the transaction, commented: ‘It has been a pleasure dealing with the highly professional team at ESR Europe to deliver a funding solution for our client the MUI Group, to facilitate this highly prestigious and exciting hotel development project.’

MUI Group has owned the hotel since 1997 and has held on to it despite reports of interest from possible buyers.