Ras Al Khaimah, May 3, 2015 – RAK Hospitality Holding (“RAKHH”), an asset owner and manager of a diverse portfolio of government owned hotels, hospitality and leisure assets in Ras Al Khaimah, today announced that it concluded an AED 880 million debt transaction in respect of its four internationally branded hotels, which are held by its subsidiary, RAK National Hotels (“RAKNH”). Mashreq was the underwriter, mandated lead arranger and bookrunner for the 8 year loan facility with Arab Bank, as the mandated arranger. Allen and Overy acted as legal counsel for the lender and Clyde and Co represented the borrower.
The debt facility will be used by RAKHH as acquisition finance to partially fund the purchase of two hotels (Rixos Bab Al Bahr in Marjan Island and Banyan Tree Al Wadi), refurbishment finance for two hotels (Hilton Ras Al Khaimah and Hilton Resort & Spa Ras Al Khaimah) and for consolidation and refinancing existing debt.
In this occasion, Sheikh Ahmad Bin Saqr Al Qasimi, Chairman of RAK Hospitality Holding said: “Tourism is leading the way in Ras Al Khaimah and we are delighted that prominent financial institutions such as Mashreq and Arab Bank believe in the future of this industry and have strategically chosen to invest in RAK Hospitality Holding. We look forward to becoming a success story through the knowledge that our team brings to the business and which we’re going to incorporate into our development plans. We are confident that the next phase of our development will be a massive support to the efforts of the government of Ras Al Khaimah; in boosting the development of our hotels and in playing a major role to place the global spot light on ‘Destination RAK’.”
Commenting on the deal, Yannis Anagnostakis, RAK Hospitality Holding CEO said: “This is a significant transaction for us, particularly as it marks the first step in the development of RAK Hospitality Holding’s ambitious programme.
This deal will allow us to implement our growth strategy and to follow the government’s vision in setting new standards for the hospitality sector in Ras Al Khaimah. Our hotels, owned by our subsidiary RAKNH, capitalize on the strength of market demand in Ras Al Khaimah, which has been growing year on year, making us attractive for banking partners like Mashreq and Arab Bank.”
He added: “The conclusion of this debt transaction confirms RAKHH’s solid financial platform. It allows us to concentrate on extracting maximum value from our existing assets and at the same time focus on investment opportunities that support our growth plans. We want to create memorable experiences for local guests and visitors from around the world.”
John Iossifidis, Head of Corporate & Investment Banking Group, at Mashreq emphasized the importance of the hospitality sector in the Middle East and how Mashreq, in conjunction with Arab Bank, have been instrumental in successfully closing one of the largest facilities in the hospitality sector in RAK to date.
He said: “The successful closure of this transaction reiterates our commitment to growth initiatives of the Emirate. The Government of Ras Al Khaimah has a long standing partnership with Mashreq and we remain committed to working alongside them to provide solutions to their future financial service needs.”
Mohammed Masri, UAE Country Manager at Arab Bank plc, said: “We are delighted to be financing RAKNH. Through this deal, RAKNH will be able to refinance existing debt and carry forward with its growth plans in an important sector of RAK’s economy. It also demonstrates our strong commitment to continue building long term relationships with our strategic clients.”