NH Hoteles has signed a syndicated loan for €650M with a term of 5 years. Due to the market confidence in the Company, in the good performance of the business and in the development plans, the different banks were prepared to grant a total of €1.363M.
This operation involves 34 banks, with the BBVA acting as the agent bank. The syndicated loan will be assigned both to cancel NH Hoteles’s current debt and to finance the development plans of the Group.
NH Hoteles set out its strategic expansion plan back in January, in order to strengthen its position as leader in the European mid-segment by focusing its capital expenditures on growing organically in the major markets where the company is already present. The Company expects to take advantage from the good forecast for the coming years in the European hotel industry and from its position as a reference in those countries.
The company plans to double the number of rooms opened and signed for the coming three years. The targets set by NH Hoteles, to have 72,000 rooms and an EBITDA of more than €300M by the end of 2009, will consolidate its position as the leader in the European hotel industry.