Jumeirah Group secures $1.4 billion loan for expansion
The Jumeirah Group, a luxury hotel chain and a member of Dubai Holding, announced today that it has raised a $1.4 billion unsecured syndicated loan for further expansion.
The loan has been priced at 2.75 per cent above London interbank offered rate (LIBOR) and is due by 2019. The group said it would be used for expansion and for general corporate purposes at the parent level of the company.
Jumeirah said that the loan was lead arranged by Abu Dhabi Commercial Bank, Dubai Islamic Bank, Emirates NBD, HSBC, Mashreq and Standard Chartered. Financial group Rothschild was hired to advise on the transaction.
“This financing will support our focus on driving profitable revenues from the existing portfolio while giving us the headroom to continue our local and international expansion,” said Gerald Lawless, president and group chief executive officer, Jumeirah Group.
“This is the first time we have raised funds through a syndicated loan and we are pleased to be supported by the highest calibre of international and local banks.”
The average occupancy in Jumeirah’s portfolio of hotels has increased by eight per cent globally year to date in September this year, compared to the same period in 2012. Revenue per available room, an industry standard for measuring performance, rose by 15 per cent in September.
Jumeirah has been eying strong international expansion with the opening of Messilah Beach Hotel & Spa in Kuwait earlier this year. Lawless said Jumeirah was targeting a major push into Saudi Arabia and identified Jakarta, Kuala Lumpur and Vietnam for future openings.
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