US$150 million deal announced for Express by Holiday Inn hotels in the GCC

Identifying a need for branded budget hotels in the Gulf region, a
consortium of 12 regional investors have decided to finance the US$150
million launch and development of more than 20 Express by Holiday Inn
hotels across five countries in the GCC.

According to an official release, the owning company for the hotels,
Ishraq, will control the rights to the three-star brand - the first
international brand of its kind to enter the Arabian Gulf countries on
this scale - across the GCC, with the exception of Saudi Arabia. Dubai
International Capital (DIC), the international investment arm of Dubai
Holding, is Ishraq's anchor investor and the key player in the deal.

The 20 properties will be operated on behalf of Ishraq by Hospitality
Management Services Middle East Ltd (HMS), the master franchise
developer and operator of Express by Holiday Inn in the Gulf states.

Sameer Al Ansari, chief executive officer, DIC, said that there is a
huge gap in the market for branded budget hotels, which the company
believes is essential to maintain the target visitor figures for the
next 10 years in the Gulf.  "Express by Holiday Inn is the largest
budget hotel brand in the world, with proven results, and the launch in
the Middle East will help fill the gap for affordable accommodation at
guaranteed quality," said Ansari.

The first property will be built at Knowledge Village, part of the Dubai
Technology and Media Free Zone (TECOM).

To address the identified regional market need for value hotel
accommodation, particularly for business travel, the development of the
Express by Holiday Inn brand will see properties located within
commercial centres, along major road arteries and in around business and
industrial parks, said an official release.

Chris Moloney, chief operating officer, InterContinental Hotels Group,
Middle East and Africa, said: "There is a need for this type of
internationally branded three star hotels that provide quality service
at value for money. We have made a commitment to the GCC market and have
the ability to respond to either owner's or customer's demands. This is
why we looked for partners that really understood what the brand is
about."

According to WTO figures, the Middle East will be the fastest-growing
region by 2020, with estimated growth of 7.1 per cent per annum, and 69
million tourists. 37 per cent of these tourists are tipped to be
intra-regional travellers, with 32 per cent coming from Europe.

The deal was structured, arranged and placed by Addax Investment Bank,
the Middle East investment bank based in Bahrain.