Luxury hotelier plans to expand Madinat Jumeirah, as well as open new properties worldwide
Dubai luxury hotelier Jumeirah Group will raise a $1.4bn, six-year loan as it looks to take advantage of a fall in borrowing costs, bankers familiar with the plan told Bloomberg.
Jumeirah, part of government-owned Dubai Holding, will pay 2.75 percentage points over the London interbank offered rate (Libor), two bankers, who asked not to be identified due to the sensitivity of the matter, said.
They added that lenders have been give four weeks to respond with commitments to the facility.
Jumeirah, which operates the iconic Burj Al-Arab hotel in Dubai, currently manages luxury resorts across the Middle East and Europe.
It has 18 hotels in its immediate pipeline, including properties in Egypt, Jordan, Morocco, Qatar, Oman and five in China.
The company is also due to open its first hotel in India, in Mumbai in 2017, and is also examining opportunities in countries including Saudi Arabia, Pakistan, Myanmar and destinations in the Far East, group CEO Gerald Lawless said last month.
Jumeirah is also planning to spend $680m on expanding its Madinat Jumeirah shopping and hospitality complex in Dubai to include a luxury five-star hotel, villas complex, restaurants, a commercial centre featuring retail stores and an open walking area.
The luxury hotel in the project will have 420 rooms with sea views and will also feature a range of international restaurants.
The group of villas and hotel apartments in the project will be run by Jumeirah Living, one of the subsidiaries of Jumeirah Group. The complex will host 45 luxury villas and hotel apartments.
The project is slated to be completed before the end of 2015.
Jumeirah also runs luxury serviced residences brand Jumeirah Living, the spa brand Talise, Jumeirah Restaurants, Wild Wadi Water Park, The Emirates Academy of Hospitality Management, and Sirius, its global loyalty programme.