London – March 20th Shoosmiths has advised Metro Bank on a £79 million refinancing for Z Hotels, secured against two recently developed London hotels located in Leicester Square and Covent Garden.

Published: 23 March 2026

Z Hotels is a UK-based hotel operator focused on delivering affordable luxury accommodation in prime city centre locations. The refinancing enables the group to restructure its existing development finance, freeing up cashflow to fund future investments and support its continued growth strategy.

The financing relates to two high-profile central London assets. The Leicester Square hotel, located on Charing Cross Road, was developed following the conversion of an office building, while the Covent Garden site at Bedford Street has recently secured planning consent for additional rooms, enhancing its long-term value. The refinancing arrangement will drive Z Hotels’ long-term growth strategy.

This transaction represents one of the largest hotel financings completed by Metro Bank to date, highlighting Shoosmiths’ strength in advising lenders on complex, high-value real estate finance transactions within the hospitality sector.

The Shoosmiths team was led by Banking & Finance Partner James Salford, Principal Associate Anna Richardson, Senior Associate Hannah Tinsley and Trainee Solicitor Beth McTigue.

James Salford, Partner at Shoosmiths, commented:

“We are delighted to have supported at Metro Bank on this significant refinancing for Z Hotels. This landmark transaction demonstrates the bank’s continued commitment to supporting established operators in the hospitality sector, and it was a pleasure to work collaboratively with Gavin Turner (Head of Hotels) and his team to deliver this refinancing.”

Nick Kalamaris, head of hospitality and leisure at Metro Bank, added: “This significant refinancing package supports Z Hotels’ ambitious growth plans, job creation, and delivery of first-class guest experiences across the UK.”