IFA Hotels and Resorts has entered into a sale and purchase agreement (SPA) to sell its Fairmont The Palm property for $325 million. The agreement is with a unit of Kuwait-based Arzan Financial Group (AFG).
Acquisition to Boost GCC Hospitality Fund
The 391-room hotel, located on The Palm Jumeirah, will become part of Arzan Investment Management’s (AIM) growing portfolio and contribute to the launch of its GCC Hospitality Fund platform. This move aligns with AIM’s strategy to invest in full-service hotels in prime cities, creating institutional investment opportunities.
Talal Jassim Al Bahar, Chairman of AIM and AFG, highlighted the acquisition’s significance, saying it reinforces their focus on expanding key hospitality assets across the region.
Recent Financial Milestones
In October 2024, IFA Hotels and Resorts secured a 600 million AED ($163 million) refinance for the property with a UAE bank, featuring a 15-year maturity. The refinancing deal replaced an existing loan of 581 million AED, further stabilising IFA’s financial position.
IFA Hotels, a subsidiary of Kuwait’s International Financial Advisors (IFA), is listed on both the Boursa Kuwait and the Dubai Financial Market (DFM).
