SHUAA Capital psc announced today the successful closing of the private placement transaction undertaken by Rotana, Hotel Management Corporation (Rotana Hotels).

The transaction attracted strategic regional institutional and individual investors for a 40% stake of the company comprising a capital increase and a partial sale by existing shareholders.

Headquartered in Abu Dhabi, Rotana Hotels is one of the leading regional hotel chains in the Middle East, with a portfolio of 21 operating properties encompassing over 4,750 rooms, in addition to 10 properties under construction and 11 newly signed agreements bringing Rotana Hotels' portfolio to 42 properties by 2008. Rotana Hotels plans to have 50 properties under management by 2010, with a strategic aim of managing at least one property in every key city in the Middle East. The company operates a portfolio of brands which includes Rotana Hotels, Rotana Suites and Rotana Resorts in addition to the newly launched "Centro by Rotana" – a three-star hotel concept.

Mr. Nasser Al Nowais, Chairman of Rotana Hotels commented that "This is another milestone in the history of Rotana Hotels. We are proud to have built Rotana into a leading regional brand and established ourselves firmly in the hospitality sector in the Arab world. We are now looking to take the company with our new partners to new levels".
Mr. Makram Kubeisy, Managing Director of SHUAA Capital's Investment Banking Advisory, said: "We are very pleased to be associated with Rotana Hotels, which is a very successful company, with a strong management and an excellent track record and strong growth prospects."

Proceeds from the capital increase will go towards future investments, specifically investments in key hotel properties throughout the Middle East and to promote the newly-launched "Centro by Rotana" brand. 

On the presence of favorable market conditions for the "Centro by Rotana" brand, Mr. Samer Katerji, Vice President at SHUAA Capital's Investment Banking Advisory, commented: "We believe that the "Centro by Rotana" brand is being introduced at the right time, as the regional markets lack quality hospitality products in this segment."

SHUAA Capital acted as financial advisor to Rotana Hotel Management Corporation, as well as the sole placement agent. The transaction was managed, structured and executed by the Investment Banking Advisory team. 

Mr. Selim El Zyr, President and CEO of Rotana Hotels said: "We are very pleased to have had SHUAA Capital on board for this transaction. As a next step we envisage tapping into the local markets through a public floatation within the coming two to three years, subject to favorable market conditions." Mr. El Zyr added "In the meantime, we are focusing on expanding our operations into new markets and sectors, and we have ambitious plans to grow our room portfolio to around 9,000 in the next two years". 

SHUAA Capital's Investment Banking Advisory offers client-focused investment banking services to established companies in the GCC region. Its activities centre on transactions that require either raising capital or unlocking value. Services include private placements, public offerings of equity and debt securities, trade sales, mergers, acquisitions, divestitures, spin-offs and structured debt products.

SHUAA Capital psc, established in 1979, is a public shareholding company organized and headquartered in Dubai, United Arab Emirates.  SHUAA Capital's shares are listed on the Dubai Financial Market and on the Kuwait Stock Exchange. The company provides asset management, portfolio advisory and brokerage services to investors interested in the 12 capital markets in the Arab World.  It also manages a portfolio of private equity investments for its own account and on behalf of its clients.  In addition, SHUAA Capital offers a broad spectrum of investment banking services to established companies in the GCC region.

About Rotana Hotels 

Rotana Hotels has a portfolio of 21 properties in Dubai, Abu Dhabi, Lebanon, Egypt and Syria with another 21 properties under construction. The company's vision is to be the leading and preferred hospitality management company operating Hotels, Suites and Resorts, within every key city in the Middle East.  www.rotana.com