PickAlbatros Hotels secures USD 23 mn loan from Vantage Capital
Egypt-based PickAlbatros Hotels has obtained USD 23 mn worth of mezzanine loan from South African fund manager Vantage Capital, according to a joint statement (pdf). The hotel owner and operator will use the financing to fund its working capital and renovate five hotels it recently acquired.
The funding transaction marks Vantage’s “inaugural investment” into Egypt, Vantage Managing Partner Warren van der Merwe said. The Egyptian hotel group has been reportedly in talks with Vantage since last January for a USD 40 mn convertible loan to finance three planned hotels.
This is also one of the largest mezzanine transactions by a foreign investor in the Egyptian tourism industry, a source close to the transaction told us.
Promising performance despite covid-19: PickAlbatros Hotels has seen a “resilient performance” in recent months despite the covid-19 implications on the hospitality sector, David Kornik, a partner at Vantage Capital, said in the statement. The hotel group’s long-term growth potential seems to be "firmly intact," he added
Advisors: Zilla Capital acted as the financial advisor to PickAlbatros, while Matouk Bassiouny & Hennawy and South Africa's Werksmans were assigned as legal counsel.