Alpha Dhabi acquires National Corporation for Tourism and Hotels for $199m

Acquisition makes Alpha Dhabi largest shareholder in NCTH, with a 36.4 per cent stake

Hamad Al Ameri, chief executive and managing director of Alpha Dhabi. Wam
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Alpha Dhabi Holding, a unit of Abu Dhabi's International Holding Company, has acquired a 36.4 per cent stake in the National Corporation for Tourism and Hotels for Dh730 million ($199 million).

The deal makes Alpha Dhabi the single largest shareholder in the hospitality owner, manager and operator, Alpha Dhabi said in a statement on Thursday to the Abu Dhabi Securities Exchange, where its shares are traded.

“We continue to see strong and long-term growth potential of the UAE’s hospitality, lifestyle and tourism sectors,” said Hamad Al Ameri, chief executive and managing director of Alpha Dhabi.

“The transaction … adds weight to our ambitions as we continue to accelerate the diversification of both our operating and investment portfolio.”

The latest acquisition adds to Alpha Dhabi’s asset-rich hospitality portfolio that includes Cheval Blanc Randheli — LVMH’s second hotel venture — St Regis Saadiyat as well as Al Wathba Luxury Collection Desert Resorts.

The company posted a 161 per cent rise in its first-quarter net profit, driven by a surge in revenue as it continues to push for more acquisitions.

Last year, Alpha Dhabi more than doubled its annual net profit to Dh10.6 billion.

Alpha Dhabi, which was established in 2013, listed its shares on the ADX in June 2021.

Since then, it has rapidly expanded its portfolio, foraying into diverse sectors including construction, health care, hospitality and industry after completing a series of acquisitions in 2021 and 2022.

Last year, the company increased shareholding in Aldar Properties and investment in European luxury hospitality group Nammos.

In January, it formed a joint venture with Mubadala Investment Company to invest in private credit opportunities amid a tightening monetary environment globally.

In December, it acquired a stake in European luxury lifestyle group Nammos, boosting its portfolio in the hospitality and food and beverage industry.

ADX-listed National Corporation for Tourism and Hotels, meanwhile, owns, manages and operates a number of hotels in Abu Dhabi, including the InterContinental Hotel Abu Dhabi, Al Raha Beach Hotel and Novel Hotel City Centre, as well as the Danat Jebel Dhanna Resort, Dhafra Beach Hotel and Tilal Liwa Hotel in Al Dhafra Region.

Updated: May 11, 2023, 6:33 PM