UK-based hybrid extended-stay player edyn continues to gather expansion momentum with news that it has secured an additional £105 million in debt funding from Blackstone Mortgage Trust and KSL Capital Partners’ European Capital Solutions platform (KSL ECS) to expand its Locke and Cove brands across Europe. The new funding will directly support the development of properties in Zurich and Lisbon.
The new support builds on the £195 million multi-asset debt facility created last year with Blackstone and KSL to support the acquisition and development of five new projects.
Last month, edyn acquired the Hotel Ascot in Zurich, which it will convert to Locke and open in 2023 with 80 mixed-style rooms and amenities that include a restaurant, bar and coffee shop. edyn currently operates properties across the UK and Europe alongside a network of partners to create more than 80,000 sites in 260 locations.
The Lisbon development is the conversion of a historic Portuguese convent, located close to Avenida da Liberdade in the city center. Scheduled to open in 2023 the property will be the largest Locke to date, consisting of 369 keys, with amenities that include two destination restaurants, three cocktail bars, café and co-working space, swimming pool, courtyards, gym and meeting rooms.
Addressing the challenges of growth, edyn CEO Stephen McCall told HOTELS last week, “Growing pains is a natural part of rapid growth, though remaining agile, frequent communication and building positive relationships with our partners has been essential to navigate the added challenges of a pandemic, Brexit, and talent shortages.”
That said, McCall added that edyn’s portfolio has traded “exceptionally well” this year with expectations to exceed 2019 performance. “Our sights are firmly set on expansion into Europe – most notably Germany – this year, where will open 536 keys across Munich and Berlin,” he said. “In addition, we are laying the groundwork for further openings in London and our entry to the Swiss market with the opening of a Locke in Zurich in 2023.”
Further explaining performance and ability to drive rate, McCall explained that edyn adopted a flexible hybrid commercial model during the pandemic, which targets both business and leisure travelers for mid- to extended stays. “This strategy affords us a steady base of longer stays at a more sustainable rate, combined with transient rates that compete with those seen pre-pandemic,” he said.