OakNorth funds Lancashire aparthotel

George Sell George Sell Uploaded 12 May 2021

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UK: OakNorth Bank has provided a £1.7 million loan to the HY Hotel in Lancashire.

When the property opened in December 2019, it created 20 new jobs, but when the pandemic hit, the hotel was forced to close to the general public. Rather than having rooms remain empty and unused, the hotel provided heavily discounted rates on apartments to all NHS staff and key workers travelling for work. The self-contained apartments are fully equipped with kitchen and laundry facilities.

The £1.7 million capital from OakNorth Bank will "help ensure the hotel capitalise on the return of tourists when hotels are allowed to reopen this month".

Launched in December 2019, HY Hotel was previously The Ashton Park Hotel, which closed in 2018, and was also known locally as The Langdales Hotel.

During the summer months last year when the UK came out of lockdown and the hotel was able to reopen to the general public, it experienced 100 per cent occupancy, benefitting from "Brits opting for staycations rather than travelling abroad".

The property believes the HY Hotel is well positioned to take advantage of this trend again this year, offering 35 one- and two-bedroom apartments, as well as a gym, pool, Jacuzzi, sauna, coffee lounge, on-site shop and gin bar.

Dan Yates, co-founder of HY Hotels, said: “We were so excited to open in December 2019, so to be forced to close only a few months later was incredibly disheartening for the whole team. However, we didn’t let that dampen our spirits – we pivoted the business so that we could remain open whilst also doing our bit for the local community. The occupancy we saw during the summer months have only strengthened our determination to stay open and ensure we not only survive through this crisis, but thrive through it. We’re grateful to the team at OakNorth Bank who through providing this finance, have helped ensure HY Hotel has the ability to reach its full potential in the future and take advantage of the re-opening of hotels later this month.”

Stewart Haworth, debt finance director at OakNorth Bank, commented: “Hy Hotel initially assisted public sector workers in the first lockdown, and with the two subsequent lockdowns, its unique offering became essential to the local community. Rather than temporarily closing, Dan and his team thought about what they could do to help whilst also preserving jobs. It is entrepreneurial and resilient businesses like these that will play a vital role in the post-pandemic economic recovery, so it’s essential that they get the funding they need. We’re glad to have been able to support the business, helping to shore up its future and ensure it’s in a strong position to take advantage of the summer staycation boom.”

 

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