Dubai:Abu Dhabi-based Rotana Hotels, which closed a 40 per cent private placement, said it will go public in two to three years time.
Rotana Hotels is one of the leading regional hotel chains in the Middle East, with a portfolio of 21 operating properties encompassing over 4,750 rooms, in addition to 10 properties under construction and 11 newly signed agreements bringing Rotana Hotels' portfolio to 42 properties by 2008.
Rotana Hotels plans to have 50 properties under management by 2010, with a strategic aim of managing at least one property in every key city in the Middle East.
The company operates a portfolio of brands which includes Rotana Hotels, Rotana Suites and Rotana Resorts in addition to the newly launched Centro by Rotana a three-star hotel brand.
Selim Al Zyr, President and CEO of Rotana Hotels, said: "As a next step we envisage tapping into the local markets through a public floatation within the coming two to three years, subject to favourable market conditions. In the meantime, we are focusing on expanding our operations into new markets and sectors, and we have ambitious plans to grow our room portfolio to around 9,000 in the next two years."
It recently closed the private placement to regional institutional and individual investors through a capital increase and a partial sale by existing shareholders. Nasser Al Nowais, chairman of Rotana Hotels, said: "This is another milestone in the history of Rotana Hotels. We are proud to have built Rotana into a leading regional brand and established ourselves firmly in the hospitality sector in the Arab world. We are now looking to take the company with our new partners to new levels".
Shuaa Capital acted as financial advisor to Rotana Hotel Management Corporation, as well as the sole placement agent. The transaction was managed, structured and executed by the Investment Banking Advisory team.
Proceeds from the capital increase will go towards future investments, specifically investments in key hotel properties throughout the Middle East and to promote the Centro by Rotana brand.
Room for more
The stunning Al Murooj Rotana in Dubai. Rotana has plans to expand its portfolio to about 9,000 rooms over the next few years.