Abu Dhabi National Hotels secures Dh1.6bn loan for acquisitions
First Abu Dhabi Bank agrees to fund the loan
Abu Dhabi National Hotels secured a Dh1.6 billion loan from First Abu Dhabi Bank to fund its acquisition of a number of Dubai hotels, the company said on Tuesday.
The statement did not name the acquired hotels but ADNH said in November that will buy five hotels from the Emaar Hospitality Group, a subsidiary of Dubai’s biggest listed developer Emaar Properties. The value of the deal was not disclosed and the transaction was expected to be completed by late 2018 or early 2019.
"“This landmark agreement reflects our ambition to ensure sustainable growth through strategic acquisitions in our core markets," Sheikh Ahmed Al Dhaheri, vice chairman of ADNH, said in a statement on Tuesday.
ADNH has agreed to buy from Emaar Properties the Address Dubai Mall, Address Boulevard, Address Dubai Marina, Vida Downtown and Manzil Downtown. Together, they account for around 1,000 hotel rooms.
As part of the deal, ADNH - one of the biggest hotel owners in the emirate of Abu Dhabi - will enter into long-term management agreements with Emaar Hospitality to operate the assets under the Address and Vida brands.
ADNH is seeking to strengthen its presence in Dubai and expand its portfolio of luxury hospitality assets, the company said in November.
Emaar Properties chairman, Mohamed Alabbar, said in July that the Dubai-listed developer planned to sell some of its non-core portfolio to finance growth and focus on hotel management rather than asset ownership, in an interview with CNBC Arabia.
Emaar Hospitality is moving towards an "asset-light" model to help the business unlock its potential, Mr Alabbar said when the hotels sale to ADNH was announced.
Updated: January 15, 2019 11:57 AM