British bank OakNorth has loaned £2.8 million to Helmsley Hospitality partners Simon Rhatigan and Simon Kershaw, who will use the money to launch a new boutique hotel brand, Bike and Boot, starting with the acquisition and conversion of an existing hotel in Scarborough, North Yorkshire, England.
The duo acquired the 50-room, Grade II-listed Mount Hotel in Cliff Bridge Terrace and will refurbish it, increasing the number of rooms to 59 by converting an adjacent five-story townhouse they also are acquiring.
In addition to a new 100-seat bar and grill, the Bike and Boot hotel will feature secure bicycle storage, drying rooms for walking gear and surfing wetsuits, dog-washing facilities, a lounge with complimentary hot drinks, and a cinema.
The property is located seaside (31 of the 59 rooms will have ocean views) and within walking distance from the city center and Scarborough train station.
Following this opening, Rhatigan and Kershaw plan to open four hotels under the new brand, with their second site, a new-build, 80-room hotel in the Peak District National Park, expected to be complete in 2020;
Both executives have a track record in hospitality. Rhatigan ran the management contract for the Devonshire Hotels & Restaurants Group and prior to that was the managing director of The Feversham Arms Hotel & Verbena Spa in North Yorkshire. During his tenure the hotel went from a 17-bedroom pub to a 33-room member of Small Luxury Hotels of the World. Kershaw has held senior roles within Whitbread, and did consulting with several independent hotels.
“This unique hotel concept is the brainchild of two experienced hoteliers who have worked together for several years,” said Deepesh Thakrar, senior director, debt finance at OakNorth. “Both Simons have an extensive track record in developing and delivering for some of the UK’s respected hotels and leisure brands and have successfully built a business that provides strategic management services to the hospitality industry, Helmsley Hospitality. We look forward to watching the Bike and Boot brand develop and working with them on future sites.”