Abu Dhabi National Hotels (ADNH) and First Abu Dhabi Bank (FAB) have signed an AED1.6 billion loan facility agreement.
The agreement will provide ADNH with the financing capability to acquire a number of Dubai-based hotels from Emaar Properties.
The agreement was signed by Sheikh Ahmed Mohammed Sultan Suroor Al Dhaheri, vice chairman of ADNH, and André Sayegh, deputy group CEO and group head of Corporate & Investment Banking at FAB.
Al Dhaheri said: “This landmark agreement reflects our ambition to ensure sustainable growth through strategic acquisitions in our core markets. Our continued expansion across the UAE allows us to contribute to economic prosperity throughout the country, which is an important aspect of the Abu Dhabi Vision 2030.”
Sayegh added: “Supporting the Abu Dhabi Vision 2030 and contributing to growth throughout the UAE are key pillars of FAB’s lending model. This agreement supports this mandate and highlights our reputation as the bank of choice for large corporates in the UAE and beyond. We are delighted to have concluded this loan facility with ADNH and to support the development of the hospitality sector.”
In November, Emaar Hospitality Group and ADNH penned an agreement that will see Emaar divest its entire interest in a portfolio of five hotels in Dubai in a $600 million deal.
The portfolio of five hotels includes Address Dubai Mall, Address Boulevard, Address Dubai Marina, Vida Downtown and Manzil Downtown, together with about 1,000 hotel rooms.
As part of the transaction, ADNH will enter into long-term management agreements with Emaar Hospitality to continue operating the assets under the Address and Vida brands.For all the latest banking and finance news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
Subscribe to Arabian Business' newsletter to receive the latest breaking news and business stories in Dubai,the UAE and the GCC straight to your inbox.