As the London hospitality industry continues to weave its way through the coronavirus pandemic, a new generation of lifestyle establishments is sweeping the London hotel scene.
p> In an increasingly restrictive credit environment, it is the specialist lenders who are mobilizing to finance these new innovative activities.
A year later, since the first pandemic-induced lockdown changed lives as we know it, businesses across the spectrum continue to battle business disruption. The hotel industry is not exempt. Despite this, a new generation of lifestyle hotels has emerged in London that promises to inject new energy into the sector – providing a more complete and personalized experience for guests looking to strike a balance between luxury and comfort.
From an investment perspective, however, funding these new developments is far from straightforward. Economic turmoil has created an increasingly restrictive lending environment, and for small businesses looking to innovate, finding a financial partner with the appetite and openness to meet their capital needs can be a challenge. more difficult than expected.
Find the right fit
It is well known that traditional lenders tend to favor a checkbox approach when evaluating new projects in order to save time and minimize risk. And while this quickly eliminates ineligible businesses, it also often translates into a reduction in more creative, forward-looking businesses before a lender has had a chance to properly assess their proposals.
Of course, it’s entirely possible to get financial support – hoteliers just need to make sure they’re looking in the right places. In this case, the solution often comes in the form of the specialized lender. Bringing an enthusiastic and open-minded vision to the table, these financiers are willing to devote the time and effort to truly know a business and understand its vision.
Specialty lenders, such as Leumi UK, often have a much deeper understanding of the niche markets in which they operate, meaning they are much more flexible when it comes to valuing a business – taking into account current risks in the sector and looking beyond the short term. obstacles in order to support proposals with significant potential. In addition, these lenders understand the importance of creating stable and lasting relationships with their clients and, as such, favor a much more personalized approach.
The new generation
Access to such lenders gives imaginative new businesses the opportunity to thrive, even in times of economic instability. And many exciting initiatives are taking place in the hotel space. Shiva Hotels, for example, is at the forefront of the new era of lifestyle hotels.
The esteemed hotelier successfully delivered two carefully selected establishments last year. Middle Eight and The Guardsman have been reoriented in line with Shiva’s vision for a new kind of exciting city experience, offering a hybrid alternative to London’s generally more sterile luxury offering.
In the future, the challenges of the hospitality industry will undoubtedly prevail. The coronavirus pandemic has reshaped society and changes in consumption habits will force hotel businesses to evolve and adapt in order to continue to attract a more aware clientele. For these companies, it is the specialized lender who will play a fundamental role in supporting their development, laying the foundations for the hotel experience of tomorrow.