Bank of China provides a £50 million GBP loan for the construction of the InterContinental London Westminster Hotel

Project narrative

On April 22, 2010, the Bank of China (BOC) entered into £50 million GBP secured development loan agreement with Splendid Hotel Group — a hotel development firm and partnership between Mr. Shiraz Boghani and Mr. Bashir Nathoo — to finance the construction of a 254-room six-story luxury hotel, the InterContinental London Westminster Hotel, at the freehold site of the former Queen Anne's Chambers near New Scotland Yard in London's West End. The hotel had a total cost of £100 million GBP, with each room costing roughly between £180,000 GBP and £200,000 GBP. InterContinental Hotel Group was awarded a contract to operate the hotel for 20 years in October 2009. This was BOC's first major hotel project in the United Kingdom. The hotel was spread over a 120,000 square foot site, occupying four buildings across three streets. The hotel was originally expected to open in December 2011, prior to the 2012 Summer Olympic Games in London. The £32 million GBP design and build contract was awarded to Broadoak Construction (South East) Ltd on June 16, 2010. On April 8, 2011, Splendid Hotel Group was dissolved pursuant to a letter sent by Boghani to Nathoo. At the time of dissolution, the InterContinental London Westminster Hotel, as well as another hotel development, were unfinished. This led to a dispute between the former partners on how to handle them; Boghani sought to sell them as soon as possible, after a three-month marketing campaign, while Nathoo wanted to complete them and then sell them. The two parties took the matter to English court. At the same time, on June 6, 2011, BOC wrote a formal letter to Boghani and Nathoo on June 6, 2011, listing what it argued were events of default under the facility. On July 13, 2011, it wrote again listing a series of conditions necessary for the facility to continue, namely an additional deposit of £30 million GBP at BOC. BOC required acceptance on July 20, 2011, which both Boghani and Nathoo granted. Boghani deposited £15 million GBP with BOC. Concurrently, on July 22, 2011, Broadoak wrote to the partners expressing concern at what it saw as a substantial shortfall on its account with the partners; a sale of the development before completion would necesitate a release of novation of the partnership's obligations. In September 2011, the hotel development was put up for sale. After its sale, the original contractors were replaced, which required budget, structural, and design adjustments on the part of the new contractors. Arcacia Consulting served as one of the new contractors. ISG Limited served as the new main contractor. Shaca Construction Ltd. served as the building contractor. Dexter Moren served as the architect and space planner. RPW Design provided interior design, decorative lighting, furniture, and finishes services for the hotel. The hotel was opened with 256 rooms on November 28, 2012. In September 2014, the InterContinental London Westminster Hotel was rebranded as the Conrad London Westminster, ending InterContinental Hotel's involvement in the operation of the hotel.