Abu Dhabi National Hotels and First Abu Dhabi Bank have signed an AED 1.6 billion loan facility agreement to provide ADNH with the funds to acquire several Dubai hotels owned by Emaar Properties.
While the bank did not specify which properties will be financed under the loan agreement, Dubai-based Emaar announced last month it is selling five of its hotels—The Address Dubai Mall, Address Boulevard, Address Dubai Marina, Vida Downtown and Manzil Downtown—to ADNH for a total value of AED 2.2 billion. As part of the transaction, ADNH will enter into long-term management agreements with Emaar Hospitality Group to continue operating the assets under its Address Hotels + Resorts and Vida Hotels and Resorts brands.
The loan 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 and investment banking at FAB.
“This landmark agreement reflects our ambition to ensure sustainable growth through strategic acquisitions in our core markets,” said Al Dhaheri in a statement. “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.”
“Supporting the Abu Dhabi Vision 2030 and contributing to growth throughout the UAE are key pillars of FAB’s lending model,” said Sayegh. “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.”