Lone Star Funds secured a €41m loan from Cheyne Capital to finance the transformation of Brussels’ iconic Hotel Metropole into a luxury lifestyle destination. 

The redevelopment will restore the landmark property in Place de Brouckère, reinforcing its position as a premier hospitality asset in the Belgian capital.

The renovation, expected to be completed by the second half of 2026, will introduce 267 rooms catering to both short-term visitors and extended-stay guests. The upgraded hotel will feature high-end amenities, including an indoor swimming pool, a fitness centre, and the highly anticipated reopening of Café Métropole.

Sustainability remains a core focus, with the project set to meet CRREM standards and achieve a BREEAM “Very Good” rating. This aligns with Cheyne Capital’s strategy of financing real estate projects that integrate environmental best practices while preserving historical significance.

“We continue to have strong conviction and appetite for the European hotel market, as recent performance demonstrates both its resilience and growth,” said Jean-Charles Prido at Cheyne Real Estate. “This transaction underscores Cheyne Capital’s commitment to financing sustainable real estate projects while accompanying leading sponsors such as Lone Star.”

This deal marks another collaboration between Lone Star and Cheyne Capital. In 2021, Cheyne Capital provided an €81.5m loan to support Lone Star’s majority acquisition of Green City Immobilier, a leading residential developer in France.

As private equity firms continue investing in high-value hospitality assets, the transformation of Hotel Metropole highlights the growing trend of revitalising historic properties to align with modern sustainability and luxury standards.

Source: IREI