Cohort Capital provided an £18.4 million mezzanine facility secured against The Stafford London, a 106-key luxury hotel in St James’s.

Cohort Capital completed the deal within ten days of its initial involvement. Existing senior lenders remained in place throughout. As a result, the refinancing supports The Stafford’s long-term plans and backs continued investment in its property, people and guest experience.

Importantly, the transaction also allowed the hotel to settle an outstanding HMRC liability in full, one previously reported in the trade press. Throughout the process, the hotel kept operations, trading performance and guest experience running without interruption.

The Stafford London has operated from St James’s Place since 1912. It remains one of the capital’s most distinguished luxury hotels.

The property comprises a collection of historic freehold buildings in St James’s. It is home to The American Bar and Michael Caines at The Stafford. The hotel is award-winning and remains backed by long-term, well-capitalised ownership.

The borrower is the ownership group behind The Stafford London, a business with an established track record and a loyal, longstanding customer base.

A refinancing was required to support the hotel’s continued investment plans and to settle an outstanding HMRC liability, while preserving the existing senior lending structure. Kremi McCabe has recently joined the business as General Manager. This reinforces The Stafford team’s focus on the next phase of the hotel’s development.

Cohort Capital understood the strength of The Stafford’s heritage, its operational performance and the requirements of its ownership team, enabling a swift and pragmatic response.

Working constructively alongside the existing senior lenders, Cohort structured a mezzanine facility tailored to the business’s needs. Delivering certainty of execution, Cohort Capital completed the transaction within a demanding ten-day timeframe.

“This refinancing represents an important milestone for The Stafford and provides a strong platform for the future. We are pleased to have partnered with Cohort Capital, whose pragmatic approach, responsiveness and commitment to execution enabled a successful outcome within a demanding timeframe.

With this refinancing successfully completed and with Kremi McCabe recently joining as General Manager, we look forward with confidence to the next chapter for The Stafford, continuing to invest in the hotel while delivering the exceptional service and experiences for which we are known.”

Mahmoud Bakr — Director, The Stafford London

“The Stafford is an exceptional asset with a strong heritage, loyal customer base and experienced ownership team.

We understood the opportunity quickly, worked constructively alongside the existing lenders and delivered a financing solution tailored to the requirements of the business.

We are pleased to support The Stafford as it continues to build on its reputation as one of London’s leading luxury hotels.”

Robert Pritchard — Chief Investment Officer, Cohort Capital