Cheyne Capital provides €41m to finance transformation of historic Hotel Metropole in Brussels
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Cheyne Capital
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Lending activity demonstrates Cheyne’s conviction in Europe’s hotel market
London, 31st March 2025 – Cheyne Capital, the global alternative investment manager, announces the closing of a €41M loan to finance part of the restoration and redevelopment of the iconic Hotel Metropole in Brussels into a premier lifestyle destination.
Situated in Place de Brouckère, the historic property, which was acquired by private equity firm Lone Star Funds in 2022, will be transformed into an upscale lifestyle hotel. The City of Brussels is supportive of the project, which will reinforce the building’s status as a flagship destination in the city.
Once complete, the hotel will cater to both short-term visitors and extended-stay guests, with 267 rooms. The renovation will include the addition of premium amenities, such as an indoor swimming pool, a fitness room, and the much-anticipated reopening of the prestigious Café Métropole. Works are expected to complete in the second half of 2026.
The redevelopment places a strong emphasis on sustainability, reflecting Cheyne Capital’s commitment to responsible investments. Upon completion, the hotel is expected to be CRREM-aligned and achieve a BREEAM “Very Good” rating. The project demonstrates best practices in repositioning an old, energy-inefficient building to the latest environmental standards, whilst preserving historic features.
Jean-Charles Prido at Cheyne Real Estate, commented: “We continue to have strong conviction and appetite for the European hotel market, as recent performance demonstrates both its resilience and growth. This transaction underscores Cheyne Capital’s commitment to financing sustainable real estate projects while accompanying leading sponsors such as Lone Star.”
This transaction marks another collaboration between Lone Star and Cheyne Capital. In 2021, Cheyne Capital provided an €81.5 million loan backing Lone Star’s majority acquisition of Green City Immobilier, a leading residential developer headquartered in Toulouse, France. Cheyne Capital’s track record of financing sustainable real estate projects also includes the £780 million facility provided alongside J.P. Morgan in 2023 to refinance the Lone Star-backed Quintain Wembley Park, one of the UK’s largest urban regeneration projects.
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About Cheyne Capital
Launched in 2000, Cheyne Capital is one of Europe’s leading alternative investment managers and is headquartered in London. Cheyne invests across the capital structure from the senior debt to the equity of corporates and real estate. Real estate investments account for approximately half of the firm’s $13 billion under management and span direct real estate lending, securitised European real estate debt and selective special situations, including impact real estate investing in affordable and specialist housing.
In real estate lending, Cheyne Real Estate seeks to provide specialised non-bank loans to borrowers in select European markets, with a flexible approach that enables it to invest into all parts of the capital structure.
Cheyne Capital Management (U.K.) LLP is authorised and regulated in the U.K. by the Financial Conduct Authority and registered as an Investment Adviser in the U.S. by the Securities and Exchange Commission. Cheyne Capital SMC Limited is an Alternative Investment Fund Manager authorised by the Central Bank of Ireland under the European Union (Alternative Investment Fund Managers) Regulations 2013. Cheyne is a signatory to the United Nations-supported Principles for Responsible Investment (PRI), a member of the Alternative Investment Management Association (AIMA), a founding member of the Alternative Credit Council and one of the initial signatories to the Standards Board for Alternative Investments (SBAI).
For all media enquiries:
Cheyne Capital Prosek Partners (Pro-Cheyneuk@prosek.com)
