edyn, the hospitality pioneer revolutionising the extended stay sector, has announced that it has secured an additional £105m in debt funding from Blackstone Mortgage Trust and KSL Capital Partners’ European Capital Solutions platform (KSL ECS).
The new funding round expands on the £195m multi-asset debt facility agreed last year with Blackstone, the world’s largest alternative asset manager, and KSL, a global leader in the travel and leisure sector, bringing total funding through the facility to £300m to date. It was originally established to support the acquisition and development of five new Locke and Cove projects across Europe, and this latest deal will further support edyn’s expansion strategy.
edyn is accelerating the growth of its European portfolio to establish its brands in the continent’s burgeoning hybrid-hospitality sector. The new funding will directly support the development of two new properties in the key gateway cities of Zurich and Lisbon.
Last month, edyn announced the acquisition of the Hotel Ascot in Zurich, a six-floor, 3,700m2 property to be converted to Locke and set to open in 2023 with 80 mixed-style rooms and amenities including a restaurant, bar, and coffee shop.
The Lisbon development is the conversion of a historic Portuguese convent, located close to Avenida da Liberdade in the city centre. As with all Locke developments, its design will reflect the cultural identity of the area, drawing on the history and provenance of this historic building in one of Europe’s most iconic cities. Scheduled to open in 2023 the 21,090m2 property will be the largest Locke to date, consisting of 369 keys, with amenities that include two destination restaurants, three cocktail bars, café and co-working space, swimming pool, courtyards, gym and meeting rooms.
Blackstone and KSL ECS’ support underlines the growing importance of the extended stay sector and edyn’s prominent position within it.
“We are excited to grow our relationship with Blackstone and KSL ECS, who have been supportive partners as we focus on driving forward our ambitious strategy for edyn and its brands,” comments Merzak Kaddour, Investment Director at edyn. “Both bring significant experience and sector expertise, along with deep knowledge of the European market. We look forward to building our partnership with them in the years to come.”
“We are delighted to finance edyn in its brand extension across Europe,” adds Steve Plavin, Senior Managing Director, Blackstone Real Estate Debt Strategies. “With KSL as a great lending partner, we look forward to seeing edyn enter these key cities.”
