SHUAA Partners, the private equity arm of SHUAA Capital, today announces that SHUAA Partners Fund I, L.P. has completed the sale of its entire stake in Rotana Hotel Management Corporation to Rotana Chairman, Nasser Al Nowais.
SHUAA Partners Fund I made the investment in Rotana in 2006 through a private placement to fund Rotana’s rapid expansion. During the Fund’s holding period, SHUAA Partners played an active role in Rotana’s development and participated on its Board of Directors.
Rotana was also retained as the exclusive manager and operator of 4 and 5 star hotels, resorts, serviced apartments and budget business hotel properties to be developed in Saudi Arabia and in the MENA region by the SHUAA Saudi Hospitality Fund I and SHUAA Hospitality Fund I, respectively. Rotana is an anchor investor in SHUAA Hospitality Fund I. This transaction does not impact the relationship of these two funds with Rotana.
Although the terms of the sale are confidential, the exit generated a strong return for the Fund’s Limited Partners in addition to the substantial dividends received over the four year holding period. Including this exit, SHUAA Partners Fund I has generated a gross IRR of 36% and a multiple of 1.95x on its realized investments.
Sameer Al Ansari, Chief Executive Officer of SHUAA Capital, said: “Rotana has proved an excellent investment for our SHUAA Partners Fund I Limited Partners and we wish Rotana’s management every success in the future. It is particularly pleasing to note that the Fund, which completed this exit in the midst of a very challenging economic and financial environment, is believed to be one of few regional private equity funds to return money to Limited Partners this year. The Fund’s performance during such a challenging period is second to none.”
Jamil Brair, Director at SHUAA Partners, added: “Our investment in Rotana has generated a very healthy return both in terms of exit price as well as from dividend distributions over the period of our investment. SHUAA Partners Fund I has had a great track record and remains a top performer. We have now exited three of the five fund investments, all at excellent rates of return.”
Nasser Al Nowais, Chairman of Rotana Hotel Management Corporation, commented: “We are very grateful for the support that SHUAA provided us over the last four years, especially with their establishment of two funds that will accelerate the roll-out of Rotana hotels. Looking ahead, we continue to strive to achieve measured growth and realistic expansion throughout the Middle East, bringing our expertise to future hotels, convention centers, serviced apartments and prime resorts.”