UAE - The chairman of Abu Dhabi-based Rotana Hotel Management, Nasser al Nowais, has bought back the entire stake in the company from private-equity subsidiary of the investment bank Shuaa Capital, Shuaa Partners.
According to Abu Dhabi newspaper The National, Shuaa Partners acquired a 22 per cent stake in the group, which currently manages 38 hotels and convention centres across the Middle East and North Africa (MENA) region, in 2006 to fund ambitious expansion plans.
The group hopes to increase its management offering to 70 venues by 2014 with new properties proposed for Iraq, Lebanon, Egypt, Syria, Saudi Arabia, Oman and the UAE, where it will open three hotels close to the Abu Dhabi National Exhibition Centre over the next two years.
“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,” the company told The National adding that the fund had generated a gross internal rate of return of 36 per cent and a multiple of 1.95 times on its realised investments.
“Looking ahead, we continue to strive to achieve measured growth and realistic expansion throughout the Middle East, bringing our expertise to future hotels, convention centres, serviced apartments and prime resorts,” says Mr al Nowais.
