Dubai – Mubasher: Abu Dhabi National Hotels (ADNH) announced that it has purchased five hotels from Emaar Hospitality, the hospitality and leisure subsidiary of global developer Emaar Properties, at around AED 2.2 billion.
The transaction will be financed through obtaining an AED 1.6 billion credit facility from one of the banks, while ADNH will self-finance the remaining AED 600 million from its resources, according to Al Bayan newspaper.
Upon the completion of the deal, ADNH's earnings before interest, tax, depreciation, and amortisation (EBITDA) will reach AED 217 million.
ADNH expected that the transaction’s impact will appear in the financial results of the first quarter of 2019.
The UK-based Standard Chartered stated previously that it was named as the financial adviser for Emaar Properties’ sale of its hotel assets.
On Tuesday, 27 November, Emaar Properties said that its hospitality and leisure business subsidiary signed “definitive documentation” with ADNH to divest its entire economic interest in a portfolio of five hotels in Dubai.
The Dubai-based and listed developer logged a 28% year-on-year growth in net profits to AED 5.262 billion ($1.433 billion) in the first nine months of 2018 from AED 4.102 billion ($1.117 billion).
From January to September, ADNH’s profits rose 9% to AED 154.7 million, compared to AED 141.4 million during the corresponding period of 2017.
