Vantage Capital Exits Successful Investment in PickAlbatros Hotels


VANTAGE CAPITAL SUCCESSFULLY EXITS PICKALBATROS INVESTMENT, SHOWCASING MEZZANINE DEBT VALUE IN TOURISM RECOVERY.
Vantage Capital, Africa’s top 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 $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.
Investment Success Amid Hospitality Recovery
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.
Vantage Capital’s investment has been a success, showcasing the resilience of Egypt’s tourism industry and the strategic importance of supporting key players in the market.
About Vantage Capital
Vantage Capital is Africa’s largest debt fund manager, providing flexible financing to mid-sized and large companies across the continent. Established in 2001, they focus on sectors like real estate, hospitality, and energy, supporting businesses through challenging times without diluting ownership. With investments in over 15 countries, Vantage Capital plays a key role in driving economic growth and industry development across Africa.