King Street and Apollo refinance Park Tower Hotel with €401m loan

King Street Capital Management, along with funds managed by Apollo, has provided a £348 mln (€401 mln) senior loan to refinance The Park Tower Hotel in London's Knightsbridge district. 

The Park Tower Hotel

Cohort Capital also acted as an alternative lender in the deal.
This transaction refinances existing debt from Cale Street Partners and continues King Street's relationship with the hotel's long-term owners.
The Park Tower, built in 1973, is a 16-story landmark hotel with 271 rooms, a casino, and the Nusr-Et restaurant. Its prime location and repositioning potential make it a prominent hotel in Knightsbridge.
Located opposite the Mandarin Oriental Hyde Park and near Sloane Street and Harrods, the Park Tower offers direct views of Hyde Park.
The business plan aims to optimize the luxury hotel property and reposition the prime asset, integrating its residential and retail components, leveraging King Street and Cohort Capital's expertise in this area.
Paul Brennan, partner and co-head of Real Estate at King Street Capital Management, commented: “Park Tower is a landmark Knightsbridge hotel. This transaction plays to our structuring expertise and focus on high-quality hospitality and residential opportunities, delivered with disciplined execution. We’re pleased to partner with Apollo and Park Tower ownership, further underscoring our collaborative approach to working with experienced sponsors and lenders on high-quality, complex assets.”
Ben Eppley, partner and head of Real Estate Credit, Europe, at Apollo, commented: “Park Tower is a premier London property in the heart of Knightsbridge. We’re pleased to serve as senior lenders in this transaction, supporting Park Tower’s high-quality owners alongside the experienced team at King Street as they embark on the repositioning of this landmark asset.” 
Robert Pritchard, CIO at Cohort Capital, added: “Fantastic to work with King Street and Apollo on the refinance of the Park Tower Hotel, an asset that represents a combination of scale, location, and repositioning potential in London’s prime hospitality market." 
Taylor Wessing and Mutual Finance advised the borrower in the transaction. King Street and Apollo received legal counsel from Simpson Thacher & Bartlett, Mishcon De Reya, and Linklaters.