EGYPT – Vantage Capital, an Africa mezzanine debt fund manager, has fully exited its investment in PickAlbatros Hotels. 

This Egypt-based hotel group owns and operates numerous 4-star and 5-star hotels in Red Sea destinations like Sharm El Sheikh, Hurghada, Sahl Hasheesh, and Marsa Allam. 

These hotels feature beachfront access, water parks, fitness centers, and swimming pools.

In December 2020, they invested US$18.4 million in PickAlbatros Hotels during the peak of the Covid-19 pandemic. 

This funding helped the hotel group manage operational costs and complete renovations on new properties amid the challenging period. Despite a significant drop in tourism, the investment allowed the hotel group to maintain smooth operations.

David Kornik, Partner at Vantage Capital, shared that this investment highlighted the value of mezzanine debt. He believed Egypt’s hospitality sector would rebound after Covid-19 and took a commercial approach. 

This foresight enabled PickAlbatros to secure crucial funding when banks were hesitant, and the group successfully repaid the investment as the sector recovered.

Omar Gharbawi, Associate Partner at Vantage, emphasized Egypt’s importance as a tourist destination, welcoming 15 million international visitors annually. 

PickAlbatros has been instrumental in promoting Red Sea destinations, contributing significantly to tourism growth. Under the leadership of its founder, Mr. Kamel Abu Ali, the group’s room capacity grew from 10,000 to 14,000 in just three years.

It also has three resorts in Morocco, one in Agadir and two urban assets in Marrakesh.

Vantage Capital’s investment has succeeded, showcasing the resilience of Egypt’s tourism industry and the strategic importance of supporting key market players.

Vantage Capital was founded in 2001 and has raised more than US$1.6 billion in debt. Its mezzanine-debt division has made 39 investments in 11 African countries across four successive funds.

In 2016, Vantage Capital provided US$4.5 million of mezzanine debt to Namibian hotel firm United Africa Group to fund the construction of new hotels, but its funds are not mostly focused on hotels. Recently, the firm invested in water security and bilingual educational facilities across Africa.

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