Investment Strategy
The primary objective of the SHUAA Hospitality Fund
I, L.P. is to achieve capital appreciation through selected direct
and indirect equity, debt and/or equity related investments in both
hospitality development projects and existing hospitality properties
in the Middle East and North Africa region (“MENA”).
The Fund will generally focus on direct or indirect investments in
developments of new hospitality properties across the MENA, but may
also seek to invest in existing properties with upside potential
after renovation and re-launch.
All hospitality developments that the Fund chooses to invest in will
be managed by Rotana Hotel Management Corporation LLC or its
affiliates pursuant to duly negotiated management agreements.
Types of Investments (Back To Top)
The Fund will generally invest directly or indirectly in hospitality development projects and existing hospitality properties through investments in:
- Land and developments
- Existing properties
- Land-Owning companies
- SPVs created to develop properties or groups of properties
- MENA and/or country-specific hospitality funds that invest in the hospitality sector in the MENA
- Joint-ventures
- Buy-outs / Leveraged buy-outs
- Management buy-outs
- Recapitalizations
- Spin-offs from business restructurings or privatizations
Geographical Focus (Back To Top)
The Geographically, the Manager believes that there are favorable opportunities in the MENA Region.
Within this MENA Region, the Fund will focus on countries in which Rotana is already present and has strong local-market knowledge,
as well as on a select number of countries in which Rotana and the Manager will identify strong market-penetration potential. Investment Characteristics (Back To Top)
For each property considered, the Manager will carefully assess:
- The anticipated property’s strategic fit within
the portfolio
- The strength of the value drivers (location,
existing and anticipated demand, land price, development costs,
timing, project quality)
- The skills and capabilities of the execution team
- The existing and anticipated competitive
landscape
- The barriers complicating the entry of
competitors into the area
- The availability and quality of information to
support the decision making process
- Growth opportunities in terms of revenues and margins.
- A discernible exit strategy. Although there is no
guarantee of a successful exit from any Investment by the Fund, it
should be possible to identify credible exit scenarios at the time
of investment
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