Shuaa Partners has completed the sale of its stake in Rotana Hotel Management, bringing to an end four years of partnership with the organisation.
Shuaa initially made the investment in Rotana – through its Shuaa Capital private equity arm – in 2006, but has now divested the interest for an undisclosed sum to Rotana chairman Nasser Al Nowais.
During the period the fund played an active role in Rotana’s development and participated on its Board of Directors.
Shuaa Partners director, Jamil Brair, added: “Our investment in Rotana has generated a very healthy return both in terms of exit price as well as from dividend distributions over the period of our investment.”
Rotana has also been retained by Shuaa as the manager of its developing hospitality portfolio in Saudi Arabia and in the MENA.
Although the terms of the sale remain confidential, the exit generated a “strong return” for the fund, according to a Shuaa statement to the Dubai bourse.
Rotana Hotel Management chairman, Nasser Al Nowais, commented: “We are very grateful for the support that Shuaa provided us over the last four years, especially with their establishment of two funds that will accelerate the roll-out of Rotana hotels.
“Looking ahead, we continue to strive to achieve measured growth and realistic expansion throughout the Middle East, bringing our expertise to future hotels, convention centres, serviced apartments and prime resorts,” he concluded.