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May 25, 2021

Vantage Capital provides debt funding to Egypt’s PickAlbatros Hotels

PickAlbatros Hotels secured $23m of mezzanine debt funding from fund manager Vantage Capital.

Egypt-based PickAlbatros Hotels has received $23m in mezzanine debt funding from African fund manager Vantage Capital.

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The proceeds will be used by PickAlbatros to fund working capital as well as for renovation work of five hotels that were acquired recently.

The hotels are planned to be renovated for their re-launch under the PickAlbatros brand.

Vantage said that the latest funding transaction marks its ‘inaugural investment’ into Egypt and 31st investment across three generations of mezzanine funds.

PickAlbatros CEO Kamel Abu Ali said: “We have always taken a long-term view on the growth potential for the hospitality market in the Red Sea and we have successfully delivered on this growth strategy, consistently expanding our hotel portfolio over the past three decades.”

PickAlbatros has 15 operating hotels and nearly 10,000 rooms across the resort towns in Red Sea, Egypt, as well as two hotels in Morocco.

Vantage Capital partner David Kornik said: “While Covid-19 has created significant disruption to the global hospitality sector over the past year, we recognise that the longer-term growth potential for PickAlbatros Hotels remains firmly intact.

“The resilient performance delivered by the hotel group in recent months, despite widespread travel restrictions across its core European market, highlights the appeal of its high-quality, value-for-money offering across a broad range of markets.

“As vaccines become widely distributed, we expect international beach tourism to recover strongly and Egypt’s Red Sea is well-positioned to be an outsized benefactor over the years to come.”

Vantage said that the transaction with PickAlbatros represents its third investment in the tourism sector.

The fund manager earlier supported construction of new hotels in Uganda and Namibia.

Zilla Capital served as the financial advisor to PickAlbatros for the transaction.

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What’s missing from your IPO industry assessment?

IPO activity all but stopped in 2020, as the investment community grew wary of the effects of COVID-19 on economies. No matter how deserving a business was of flotation, momentum was halted by concerns of when a ‘new normal’ of working patterns and trade would set in. Recently, sentiment has changed. Flotations picked up again during the second half of 2021, and now in 2022 the mood is decidedly optimistic. Business leaders have their eyes on fast rebounding economies, buoyant market indices and the opportunity once again to take their businesses public. As a result, global IPOs are expected to hit back this year. With GlobalData’s new whitepaper, ‘IPOs in Consumer and Retail: 5 must-include elements for your prospectus industry report’, you can explore exactly what is needed in the essential literature. GlobalData’s focus lies in the critical areas to get right:
  • Macroeconomic and demographic environment
  • Consumer context
  • Industry environment
  • Competitive environment
  • Route to market
Interested to learn more about what to include in your IPO Industry Assessment report? Download our free whitepaper.
by GlobalData
Enter your details here to receive your free Report.

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