Pickalbatros secures $250m to expand its Moroccan hotel portfolio
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IFC is providing up to $165 million and a further $135 million has been mobilised for Pickalbatros, which will use the package to acquire and upgrade hotels in Casablanca, Marrakech and Agadir.
Pickalbatros has secured a financing package of about $250 million to fund hotel acquisitions and upgrades in Casablanca, Marrakech and Agadir, combining a loan of up to $165 million from the International Finance Corporation with $135 million mobilised from other lenders.
The project has a total estimated cost of $386 million, with Pickalbatros expected to contribute the remaining $86 million through equity, according to IFC's project disclosure. The money will support the acquisition of three hotel assets, renovations and upgrades at newly acquired and existing properties, and the refinancing of existing debt over longer maturities.
The group already operates more than 2,700 rooms across nine hotels in Morocco and has expanded through the acquisition of Sofitel Casablanca Tour Blanche and the Mövenpick Hotel Casablanca. It plans further upgrades in Marrakech and Agadir aimed at improving the environmental performance of those properties.
Sustainability conditions are built into the financing. The package includes targets linked to environmental performance, and refurbishment work is expected to improve energy and water efficiency across the portfolio. IFC will advise Pickalbatros on a sustainability framework and the group will pursue EDGE green building certification for key properties while strengthening its environmental, social and governance practices.
Zilla Capital advised Pickalbatros on financing strategy, structuring and lender negotiations, ADNA acted as legal counsel to the group and Clifford Chance advised IFC and Attijariwafa Bank. The lenders expect the expansion to support job creation, domestic procurement and wider activity in Morocco's tourism economy.