Heartwood Collection secures £100m cash injection as it steams ahead with ‘pubs with room’ expansion
Hospitality chain Heartwood Collection, formally known as Brasserie Bar Co, has secured £100m of additional funding as it steams ahead with its growth plans.
In June, the pub and restaurant chain revealed a major revamp which saw the hospitality group expand into the pubs with rooms market.
Last year, Brasserie Bar Co was snapped up by private equity group Alchemy Partners for an undisclosed sum, and was renamed as Heartwood Collection, as part of its new makeover.
The group already operates 20 pubs and 14 Brasserie Blanc restaurants across the UK – and now plans to grow into to 60 sites and up to 500 bedrooms by 2027. The expansion is expected to create around 1,500 further jobs across the UK.
To help with this revamp, a new banking facility of £50m has been agreed with Oaknorth Bank and funds advised by Alchemy Partners have already committed £50m.
Heartwood said Alchemy Partners is also expected to pump a further £50m investment into the group to help with its expansion plans.
The group has already acquired 11 freehold pubs with a further five under offer, including 120 rooms.
Heartwood said it anticipates that it will have 150 rooms in the business by June 2024.
Mark Derry, chairman of Heartwood Collection, said: “This new funding will be deployed for acquiring additional freehold sites, and it will underpin our target of reaching over 60 sites and 500 rooms over the next four years.
“While ambitious, we are confident that our combination of highly skilled chefs, warm hospitality and character-filled pubs leaves us ideally placed within a market which is considerably underserved.”
Richard Ferrier, managing director of Heartwood Collection, added: “This additional support from Oaknorth and Alchemy is testament to the strength of the business that the team at Heartwood is building.
“It will enable us to build on our success to date as we focus on growing Heartwood Collection into the UK’s leading premium pubs and pubs-with-rooms business.”