DUBAI: IFA Hotels and Resorts, a prominent player in the hospitality industry, has recently undertaken significant financial actions that reflect both the resilience and strategic foresight of the company.
The organisation secured a refinancing deal amounting to AED600 million (approximately $163 million) from a local bank, aimed at its well-known 391-room Fairmont The Palm property situated on The Palm Jumeirah.
The refinancing effort is not merely a routine financial adjustment; it represents a proactive measure to alleviate the burden of an existing loan totaling AED581 million from another UAE bank. The 15-year maturity of the new loan underscores a commitment to long-term stability while facilitating the management of financial obligations.
Moreover, IFA Hotels and Resorts is not only focused on refinancing efforts but is also pursuing growth through additional funding. The company has secured a separate AED30 million loan, having a 12-year maturity, which is earmarked for expansion activities across various operational entities within the UAE.
The dual approach—refinancing for stability and securing new loans for expansion—illustrates the company’s dynamic strategy in navigating the complexities of the hospitality sector amidst fluctuating market conditions.
Further emphasising its growth aspirations, IFA Hotels and Resorts has also engaged in international projects, as seen with its subsidiary securing a $10 million loan for a significant development in South Africa.
The initiative, alongside a recent partnership with ABSA Bank to finalize infrastructure for the Zimbali Lakes Project near Durban, highlights IFA’s ambition to expand its footprint beyond the UAE. These developments not only reinforce the company’s commitment to enhancing its portfolio but also demonstrate its ability to leverage financing for strategic growth.
