Cynergy Bank has provided a £30.9m funding package to Samko Holdings, a hotel operator with four sites across London, to support portfolio expansion and property investment.
The facility will enable the company to invest in its existing estate, add hotel rooms, and pursue site acquisitions. The transaction was arranged through Morgan Sterling, a mortgage and commercial finance broker.
Hospitality sector context
The funding comes as the hospitality sector faces challenging trading conditions, including rising operating costs and volatility following the pandemic. Cynergy Bank stated the facility provides stability for Samko to progress growth plans while maintaining occupancy levels.
Part of the facility will support a hotel that recently transitioned from a long-running government contract. The property has reopened as a standard hotel following refurbishment, targeting both leisure and corporate guests.
Company background
Samko Holdings was founded by Sampathkumar Mallaya and initially focused on industrial and engineering before diversifying into hospitality. The company has outlined plans for further hotel acquisitions in the coming months.
“Despite market challenges, Samko has demonstrated strong management, a clear strategy and impressive resilience,” said Kate Finney, relationship director at Cynergy Bank. “This funding will give them the flexibility and confidence to pursue new opportunities while strengthening their offering.”
Veeraakumar Krishnasamy, group chief financial officer at Samko Holdings, said: “The support from Cynergy Bank allows us to continue expanding our footprint while ensuring we can invest in our existing sites, especially the hotel transitioning from a government contract back to its core commercial operation.”
Kumar Nadarajah of Morgan Sterling noted that Samko’s strategy and track record made the funding opportunity viable despite challenging market conditions.
Market implications
The transaction indicates continued lending appetite for established hospitality operators with diversified portfolios, even as the sector navigates operational headwinds. The funding structure accommodates both refurbishment of existing assets and new acquisitions, reflecting a multi-phase growth strategy.
