Maven provides additional £3.1m of funding for Hotel Indigo Cardiff
Proposed extension and reconfiguration expected to add close to £4m to the anticipated sale value of the hotel
Maven has increased its investment in the £13.75m Hotel Indigo in Cardiff to provide an additional £3.1m of funding to significantly enhance the hotel development. The proposed extension and reconfiguration is expected to add close to £4m to the anticipated sale value of the hotel and an additional 22 rooms will be created, bringing the total number of bedrooms to 122.
The revised designs have made use of additional space on the basement, ground and second floors and the reception area and main entrance will be relocated to the ground floor, thereby increasing the hotel’s visibility and enhancing the guest arrival experience. The designs have also incorporated a dedicated entrance and lift to the Marco Pierre White rooftop restaurant and bar.
Funding for the project included a £1.6m equity raising from Maven Investor Partners which span high net worth individuals, wealth managers and family offices, with the remaining £1.5m funding by debt. Approximately £2.2m of the additional development expenditure is expected to qualify for Business Premises Renovation Allowance (BPRA) which provides tax incentives to encourage the refurbishment of empty commercial properties, to bring them back into use, helping stimulate local economic regeneration and creating employment.
Hotel Indigo is the boutique hotel brand of InterContinental Hotels Group, one of the largest hotel companies in the world, with 60 Indigo Hotels worldwide, including the successful Glasgow hotel and the Durham Shire Hall development, which are part of Maven’s investment portfolio.
Cardiff has been one of the strongest performing hotel locations in the UK in 2016 according to recent research, driven by a strong and growing demand for leisure and sport, and with a continued low supply of boutique hotels makes Indigo Hotel’s offering attractive. The city is also recognised as a key business destination and is benefitting from commitments from the Welsh Government to increase Cardiff’s profile as an international business centre.
The Hotel Indigo development is located close to the city’s central business district and major attractions such as Cardiff Castle, the Principality Stadium and key transport links. Construction work on the hotel is ongoing with an estimate completion date for the extended project in April 2017.
“We are delighted to have identified this opportunity to extend and improve the Hotel Indigo Cardiff and enhance the value of the development for our UK-wide co-investor network. By reconfiguring the hotel and relocating the main entrance to the ground floor, we will improve Hotel Indigo’s brand visibility within this key tourist and business destination, and enhance the guests’ overall experience during their stay. The Welsh capital is one of the most vibrant cities in the UK and we are delighted to be involved with such an exciting investment, working with high quality brands such Indigo Hotels and Marco Pierre White, to take advantage of the growing tourism, leisure and trade opportunities that Cardiff provides.”
Ramsay Duff, Investment Director at Maven