Jumeirah Group, the global luxury hotel company and a member of Dubai Holding, announced today that it has successfully raised a US$1.4 billion unsecured syndicated loan priced at 2.75 per cent 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, Jumeirah Group said: “The pricing we have been able to achieve for this syndicated loan is a testament to the Company’s financial strength and future prospects.
“This financing will support our focus on driving profitable revenues from the 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 and we are pleased to be supported by the highest calibre of international and local banks.”
Year to date September 2013, average occupancy in Jumeirah’s portfolio of hotels has increased by eight per cent 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 per cent.
The performance data is based on hotels that had more than 18 months of operations under the Jumeirah brand.