The funding will be used to acquire office space at 53-59 Chandos Place and support the conversion into Z Trafalgar Square, which will open in Q4 2019.

The hotel will have a café available to hotel guests and be within a short walk of several tourism hotspots, including Leicester Square, Trafalgar Square, the National Gallery, Covent Garden, the West End and the Strand.

“Over the years, our customer base has continued to grow and we now have hundreds of clients who stay with us several times throughout the year,” said Jonathan Raymond, director at Z Hotels.

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“Business travellers and holidaymakers alike are attracted by our competitive prices, sizeable rooms and central locations – this new hotel in Trafalgar Square will be a prime example of all three.

“We chose OakNorth for this transaction as we knew they’d be able to deliver what we need in the timeframe we needed it.

“With further growth targeted over the next few years, we expect to be working with the OakNorth team again in the future.”

Deepesh Thakrar, senior director of debt finance at OakNorth, added: “We’re delighted to have supported them with the finance to develop their Trafalgar Square site and look forward to working with them in the future.”