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Press Releases |
SHUAA Partners announces a sizeable equity investment in Rotana Hotel Management Corporation LLC. Dubai, U.A.E., May 30, 2006 – SHUAA Partners, the private equity arm of leading regional investment banking institution SHUAA Capital psc, announced today that it participated in the capital increase of privately held Rotana Hotel Management Corporation LLC (“Rotana” or “the Company”) by taking a sizeable equity stake in the Company. This capital increase also included investments by key hotel owners. Headquartered in Abu Dhabi, Rotana is one of the leading regional hotel chains in the Middle East, with a portfolio of 21 hotels and resorts encompassing over 4,750 rooms. The Company plans to add ten new properties by the end of 2007 and to have 50 properties under management by 2010 - fulfilling its strategic aim of managing at least one property in every key city in the Middle East. Rotana operates a portfolio of brands which include Rotana Hotels, Rotana Suites, Rotana Resorts and the newly launched “Centro by Rotana” – a three-star ‘elegant’ hotel concept. “This transaction was offered to SHUAA Partners based on our successful track record and our long standing relationship with management,” said Mr. Iyad Duwaji, CEO of SHUAA Capital psc and Investment Committee member of SHUAA Partners. “We are well positioned to work with Rotana to support them with their expansion strategy as we have been involved in many successful transactions in the hospitality sector over the past ten years” added Mr. Duwaji. “This is a unique opportunity to team up with a leading player in the region and to contribute to its continued success” said Mr. Abe Saad, Managing Director of SHUAA Partners. “Rotana has an accomplished management team and we will work closely with them to build on the company’s strength and grow its customer offering” added Mr. Saad. “We have identified the hospitality sector as one which holds significant growth potential in the region over the next few years, and we believe that Rotana can capitalise on this growth with it plans to both widen its product offering and enter new markets”. “We are excited at the prospect of partnering with SHUAA Partners as we enter the next phase of our aggressive expansion strategy” said Mr. Selim El Zyr, President and CEO of Rotana. “This is a rare opportunity to bring together a complementary set of skills and resources to further strengthen our presence in the region” added Mr. El Zyr. SHUAA Partners was established in 2005 and closed its first fund - SHUAA Partners Fund I, L.P. (“Fund”) - last September with commitments of US$ 200 million. The Fund focuses on investing in established businesses throughout the GCC, Egypt, Jordan and Lebanon, and has, to date, made three investments. With the closing of this transaction the Fund will have invested 38% of its commitments.
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