Metro Bank provides £79m funding to Z Hotels

Metro Bank has agreed a £79 million refinancing facility with boutique hotel group Z Hotels, in a move that underscores the lender’s ongoing commitment to supporting the UK’s hospitality and leisure sector.

The deal is designed to release cashflow for Z Hotels, enabling the company to reinvest in the growth and expansion of its portfolio across key UK cities.

Founded in 2011, Z Hotels has built a reputation as a micro-luxury hotel brand, offering compact yet stylish accommodation in prime city-centre locations. The group currently operates sites in major destinations including London, Liverpool, Glasgow and Bath.

The refinancing agreement was delivered by Metro Bank’s specialist hotel sector relationship managers, who work with hospitality clients nationwide. The transaction followed an introduction from advisory firm Beckford Advisory.

Nick Kalamaras, Head of Corporate Lending for Hospitality and Leisure at Metro Bank, said the deal reflects the bank’s continued focus on the sector.

“We’ve supported Z Hotels’ ambitions to grow its portfolio and create more jobs,” he said. “The hospitality sector continues to be a vital part of the UK economy, and Metro Bank has a specialist team dedicated to understanding the opportunities and challenges faced by operators, supported by our relationship banking service.”

Bev King, CEO and founder of Z Hotels, welcomed the partnership, highlighting the importance of sector expertise in securing long-term growth.

“We are pleased to be working with Metro Bank on this refinancing,” King said. “Their sector expertise and long-term support will help us continue investing in our portfolio and delivering high-quality experiences for our guests across the UK.”

The agreement comes amid a broader recovery phase for the UK hospitality industry, as operators seek to expand and modernise offerings following recent economic pressures.