Shuaa sells stake to Rotana Hotels chairman Al Nowais

DUBAI Shuaa Partners has sold its stake in Rotana Hotel Management Corp. to Rotana Chairman Nasser Al Nowais. Terms of the sale have not been disclosed.

Shuaa Partners is the private-equity arm of Dubai-based Shuaa Capital PSC. Shuaa Partners Fund I invested in Rotana in 2006 through a private placement to fund Rotana’s rapid expansion. Although terms of the sale are confidential, Shuaa says it generated a “strong” financial return on investment.

“Rotana has proved an excellent investment for our Shuaa Partners Fund I limited partners, and we wish Rotana’s management every success in the future,” says Sameer Al Ansari, CEO of Shuaa Capital. “It is particularly pleasing to note that the fund, which completed this exit in the midst of a very challenging economic and financial environment, is believed to be one of few regional private equity funds to return money to limited partners this year. The fund’s performance during such a challenging period is second to none.”

Shuaa retains Rotana as the exclusive manager and operator of 4- and 5-star hotels, resorts, serviced apartments and budget business hotel properties to be developed in Saudi Arabia and elsewhere in the Middle East and Northern Africa region by Shuaa’s hospitality funds.

“We are very grateful for the support that Shuaa provided us over the last four years, especially with their establishment of two funds that will accelerate the rollout of Rotana hotels,” Al Nowais says. “Looking ahead, we continue to strive to achieve measured growth and realistic expansion throughout the Middle East, bringing our expertise to future hotels, convention centers, serviced apartments and prime resorts.”