Tal Orly

Cogress enters hotel development finance market with £80m funding deal



Cogress has entered the hotel development finance market with an £80m commitment over the next five years to Latin-American hospitality company Selina.

The property investment company is now the exclusive funding partner of the hotel group and aims to fund the latter’s expansion into both the UK and Portuguese markets.

Selina is a venture capital-backed concept that boasts 128 properties across 19 countries and opts to convert existing hotels to its ‘Latin-American inspired aesthetic’ instead of developing sites from scratch.

It also generates a significant portion of its revenue through coworking spaces, unit lets to third-party entertainment operators and food and beverage sales.

“This is the biggest commitment we have made as a lender,” said Tal Orly, CEO at Cogress (pictured above).

“The scope of Selina, it’s growth to date, the innovation and the resilience of the model, and its potential to change not only the hospitality industry, but how we view and use property is reminiscent of Airbnb.

“It is an opportunity very few lenders get the chance to partner on, and I was delighted that our success to date meant Cogress was in a strong position to commit £80m over the next five years to this deal.”

The lender will raise the required funds from its community of investors, with the first investment opportunity — a portfolio of six hotels — revealed this week.

Cogress recently appointed East Eight founder Nicole Bremner as an independent director.


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