Dubai: RAK Hospitality Holding (RAKHH), which owns and manages a diverse portfolio of government owned hotels, hospitality and leisure assets in Ras Al Khaimah, on Sunday announced that it concluded an Dh880 million debt transaction in respect to 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.
“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 spotlight on “Destination RAK”, said Shaikh Ahmad Bin Saqr Al Qasimi, Chairman of RAK Hospitality Holding.
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.
“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,” said Yannis Anagnostakis, RAK Hospitality Holding CEO.
