OakNorth Bank has provided a £1.1m loan to entrepreneur brothers who own BXTR, for the launch of a boutique hotel brand in Edinburgh.
The finance will help brothers Mike and Ross Baxter launch the hotel brand House of Gods, which they hope to grow to five sites over the next five years.
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The brothers plan this growth of hotels by 2022 with between 20-50 rooms per hotel.
They will also use the finance to develop the Cowgate Market, a 70-cover late night bar and restaurant adjacent to the hotel.
Their first hotel will be a 22-bedroom four-star boutique in Edinburgh which is close to their first project, the 46 bedroom Baxter Hostel.
The hotel will be located close to the city’s Royal Mile and Wavery train station. It will also offer a 40-cover cocktail bar inspired by a rock n roll bohemian past.
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By GlobalDataMike and Ross Baxter said: “We’re extremely excited to be launching our new hotel, restaurant & bar concept and feel this very popular area of Edinburgh will be the ideal location for both sites to thrive. As well as attracting millions of tourists every year, Edinburgh is the largest financial centre outside of London and hosts hundreds of international conferences throughout the year, making it a very popular destination for business trips and holidays.”
They added: “Mohith and the team at OakNorth Bank were incredibly supportive throughout the process, ensuring we were kept in the loop and that any queries we had were quickly addressed. They have a thorough understanding of the hotel sector and share our entrepreneurial drive and ambition.”
The brothers first launched BXTR in August 2014 with the hostel in Edinburgh and then after the success of this, launched the 105-bedroom Kip Hotel in East London.
Mohith Sondhi, Senior Debt Finance Director at OakNorth Bank, said: “Over the last five years since the launch of their first project, the Baxter brothers have proven they can successfully operate both hotels and hostels with their two existing sites experiencing above-market occupancy rates year-round. Edinburgh is a city they know well, and the central location of the site will make it popular for tourists and locals alike.
“They have ambitious plans for the future, so we look forward to supporting them as they continue to expand the brand across the UK.”
