The latest facility from OakNorth will be used  to refinance its current loan facilities and fund the construction of an additional 20 rooms at its Piccadilly location — taking its total number of rooms to 132 — in addition to being used to develop new lift facilities and a new ground floor café.

Z Hotels launched its ‘compact luxury’ accommodation model in London with the opening of Z Soho in 2011 and has now grown across the city and has acquired a site each in Liverpool, Bath, and Glasgow.

The company initially secured funding from OakNorth in 2018  to support its expansion of new sites across the capital.

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Deepesh Thakrar, senior director of debt finance at OakNorth (pictured above), commented: “Z Hotel’s resilience to the Covid pandemic has been exceptional, with the business now exceeding pre-covid trading levels.

“We’re thrilled to once again have the opportunity to support [the] team and look forward to working with them again in the future.”

Bev King, CEO at Z Hotels, added: “OakNorth has now supported us on multiple transactions and has worked with us through the challenging times of both the pandemic and the current cost of living crisis.

“With this latest facility, we are moving to work closer with its team and look forward to further growing the Z Hotels brand across the UK, whilst also expanding our site at Piccadilly.”