RAK firm secures $217.9m debt to fund two hotels
The facility will be used to partially fund the purchase of two hotels, Rixos Bab Al Bahr Hotel and the Banyan Tree Al Wadi Hotel
Clyde & Co has advised RAK Hospitality Holding (RAKHH) in relation to an AED880m ($217.9m) debt transaction which will be used as acquisition finance to partially fund the purchase of two hotels, Rixos Bab Al Bahr Hotel and the Banyan Tree Al Wadi Hotel.
The facility will also be used by RAKHH for the refurbishment of the Hilton and Hilton Resort & Spa in Ras Al Khaimah as well as consolidating and refinancing existing debt.
RAKHH is focused on raising the profile of Ras Al Khaimah as a tourist destination through owning and managing a significant portfolio of hotels, hospitality and leisure assets in Ras Al Khaimah.
Mashreq was the underwriter, mandated lead arranger and book runner for the eight year loan facility with Arab Bank, as the mandated arranger.
Clyde & Co's team was led by partners Adrian Low (finance) and Barton Hoggard (corporate) with assistance from Asim Arshad (finance) and Munisha Khatwani (corporate).
Corporate partner Barton Hoggard said: "We were delighted to work with RAKHH on this significant transaction, which marks the first step of RAKHH’s ambitious development plan for the hospitality sector in Ras Al Khaimah. The hospitality industry is one of Clyde & Co's key practice areas and we are impressed by the professional and sophisticated approach that RAKHH is taking in managing the growth of the tourism industry in Ras Al Khaimah."