Dubai's Meydan Group seeks loan for hotel project

Dubai, The UAE

Dubai-based development company Meydan Group is reportedly seeking a syndicated loan of at least $122.5 million to finance a hotel project.

Sources told Reuters that Commercial Bank of Dubai was leading the discussions for a potential transaction, with one adding the financing was expected to close before the end of November.

Meydan is building several projects in the emirate, including the two-mile Dubai Canal between Dubai's Business Bay and the coast, and additional real estate projects next to its Meydan Racecourse.

Virtual Event

HOTEL OPTIMIZATION PART 2 | Now Available On-Demand

Survival in these times is highly dependent on a hotel's ability to quickly adapt and pivot their business to meet the current needs of travelers and the surrounding community. Join us for Optimization Part 2 – a FREE virtual event – as we bring together top players in the industry to discuss alternative uses when occupancy is down, ways to boost F&B revenue, how to help your staff adjust to new challenges and more, in a series of panels focused on how you can regain profitability during this crisis.


Earlier this year, the company announced plans to build a luxury hotel on Jumeirah Beach Residence. Meghnad Warrier, Meydan Group’s VP of finance, said that the completed hotel will have around 260 rooms, including hotel and serviced apartments. In June, Corinthia Hotels signed a deal with Meydan to manage a luxury beachfront resort currently under construction on the site of the former Meydan Beach Club. The completed hotel is expected to have 300 guestrooms and 60 serviced apartments when it opens in 2019.  

In March, Meydan signed a deal to obtain $476 million of financing from Qatar National Bank and QNB's United Arab Emirates affiliate Commercial Bank International, to support investment in new projects. It also obtained 1 billion dirhams of Islamic financing in June to strengthen Meydan's capital structure, diversify its investor base and support new projects.

 

Suggested Articles

Lodging owners who have the appropriate resources and capital have an opportunity to renovate at an accelerated rate and at more competitive prices.

The £18.4 million fine stems from a data breach discovered after the company purchased Starwood Hotels & Resorts Worldwide.

There are both positive and negative aspects to utilizing preferred equity capital, but it is often the best way to maintain ownership of the asset.