Abu Dhabi National Hotels, which owns a Hilton, Le Meridien and Al Diar hotels in the capital, has secured a Dh1.5bn loan for development of its hospitality projects.
ADNH secures Dh1.5bn boost to development
Abu Dhabi National Hotels (ADNH), which owns a Hilton, Le Meridien and Al Diar hotels in the capital, has secured a Dh1.5 billion (US$408 million) loan for the ongoing development of its hospitality projects. National Bank of Abu Dhabi, Abu Dhabi Commercial Bank, Standard Chartered Bank and Union National Bank provided the loan, ADNH said. The company's current projects under development in the capital include the Grand Canal Abu Dhabi, to be operated by JW Marriott, Park Hyatt Abu Dhabi and Villas on Saadiyat Island, and Capital Centre hotel at the Abu Dhabi National Exhibition Centre (ADNEC).
ADNH also operates a catering division through a joint venture with the UK's Compass Group, and owns and manages Al Ghazal Transport and Sunshine Tours. "This strategic alliance of local and international banks" was consistent with "plans of ADNH to support the growth of the UAE [and the] emirate of Abu Dhabi's economy and tourism infrastructure," said Saif al Hajeri, the chairman. Work started last June on the Dh1bn five-star Park Hyatt resort, which is part of Abu Dhabi's cultural and tourism project on Saadiyat Island. Richard Riley, the chief executive of ADNH, said at the time that the company was focusing on its existing developments, rather than taking on new projects.
"In Abu Dhabi, we have a commitment to just build another five-star hotel at ADNEC, the Park Hyatt and the Marriott," Mr Riley said. "Beyond that, we will only be redeveloping the existing properties that we now own, and upgrading them. Our pipeline is full for the size of our company." Mr Riley said the company had to keep its five-star properties up to date or "they will get left behind as the new products come online".
The company reported that net profits rose to Dh372.5m in the first nine months of last year, from Dh291.5m in the same period in 2008. But net profit for ADNH's hotel division fell by 17 per cent to Dh217m in the first nine months of last year, from Dh263m in the previous year. While the hotel division's average room rates were above last year's, occupancy rates were slightly down, which led to a drop in revenue, ADNH said.