Home Banking & Finance RAK AMI Hotel secures financing deal from RAKBANK

RAK AMI Hotel secures financing deal from RAKBANK

RAK AMI Hotel secures financing deal from RAKBANK

RAK AMI Hotel, a Ras Al Khaimah based company focused on developing and managing hotels in the emirate, has secured financing from the National Bank of Ras Al Khaimah (RAKBANK), for a new hotel development project.

The funds will be primarily used for RAK AMI Hotel’s flagship project, Mövenpick Resort Al Marjan Island, which has a gross development value of AED 543 million (US$ 147 million).  The construction of the hotel has already begun and is progressing as per schedule. The project was initiated on the back of strong fundamentals within the leisure market in Ras Al Khaimah, led by the growth in domestic and international tourism.

The financing agreement was signed by Arch. Abdulla Al Abdooli, Chairman of RAK AMI Hotel, and the CEO of RAKBANK, Peter England, and other senior representatives of both entities.

Arch. Abdulla Al Abdooli said: “Securing the financing is further validation of Ras Al Khaimah’s potential as a tourist destination and our organisation’s ability to develop world-class hospitality infrastructure. Ras Al Khaimah has outperformed others in the region in tourism performance, despite the challenges of the COVID-19 pandemic. We were the first city to be certified safe and have continued to welcome tourists, underpinned by a growth in domestic tourism. We are thankful to RAKBANK for their confidence and trust in us and we will leverage the financing for the on-schedule completion of the hotel and in creating a truly iconic resort.”

Peter England commented: “As an independent ADX listed entity, RAKBANK needs to compete directly with other banks to obtain business from all clients, including those based in Ras Al Khaimah, and we are delighted that RAK AMI Hotel chose RAKBANK over a number of other banks trying to secure this deal. At RAKBANK, we believe firmly in the vision of His Highness Sheikh Saud bin Saqr Al Qasimi, Member of the UAE Supreme Council and Ruler of Ras Al Khaimah, and are very excited to play an active role in the further development of Al Marjan Island.”

RAK AMI Hotel has been focusing on identifying hotel sector opportunities in Ras Al Khaimah. Its flagship project, Mövenpick Resort Al Marjan Island benefits from a spectacular location in the heart of Al Marjan Island and is scheduled to open in the fourth quarter of this year. Set in elegantly landscaped gardens with its own secluded white sandy beach, the hotel will add 418 hotel keys, all with direct sea views. Guests can choose from large-sized family rooms, suites or 28 beachfront chalets with private pools and gardens.

Underpinned by hospitality investment fundamentals in Ras Al Khaimah, the emirate welcomed 803,280 visitors in 2020, a drop from 1.11 million in 2019, owing to the pandemic. Yet, the rebound was even stronger, especially from the domestic market, with over 52 per cent of the total comprised of staycation visitors, which accounted for nearly 800,000 guest nights. The average room rate (ARR) in Ras Al Khaimah gained 20.5 per cent, beating the downturn effect of the pandemic, over 2019, increasing from AED 552 to AED 665, the only Emirate in the UAE to record a double-digit growth in ARR. Among international visitors, tourists from UK, Russia, Germany, the Nordic nations, India and Egypt, among others, topped the list.

Most recently, Mövenpick Resort Al Marjan Island announced a landmark addition – the longest suspended bridge that connects two buildings of the hotel. It not only adds to the aesthetics of the project but also creates an inspiring architectural marvel that will delight visitors to Al Marjan Island. At 36 metres long, the bridge will feature eight hotel rooms that are set to be widely sought-after by guests.