Jumeirah Group recently announced that it has raised a US$1.4 billion unsecured syndicated loan priced at 2.75% above LIBOR due 2019. The facility was lead arranged by Abu Dhabi Commercial Bank, Dubai Islamic Bank, Emirates NBD, HSBC, Mashreq and Standard Chartered. Jumeirah Group was advised by Rothschild on the transaction.
The loan will be used for expansion plans as Jumeirah continues to grow in the years ahead as well as for general corporate purposes, at the parent level, for Dubai Holding Commercial Operations Group.
Gerald Lawless, president and group chief executive officer, Jumeirah Group said: “This financing will support our focus on driving profitable revenues from existing portfolio while giving us the headroom to continue our local and international expansion. This is the first time we have raised funds through a syndicated loan.”
Year to date September 2013, average occupancy in Jumeirah’s portfolio of hotels has increased by eight percent globally, compared to the same period in 2012. In the same period the revenue per available room, an industry standard for measuring performance, rose by 15%. The performance data is based on hotels that had more than 18 months of operations under the Jumeirah brand.