Delayed project secures more financing
- Shaza Oman signs new financing deal for RO28m Shaza Muscat Hotel
- Local Bank Dhofars Maisarah Islamic Banking Services will extend Islamic financing
- The hotel opening is delayed from 2014 to December 2015
Shaza Oman has signed a financing agreement with Maisarah Islamic Banking Services, part of local Bank Dhofar, for the construction of the Shaza Muscat Hotel.
A soft launch is for the hotel is now scheduled for December 2015.
Maisarah called the deal part of its strategic growth plan and continuous efforts to finance large-scale projects across the Sultanate, in a statement.
Global Oman Development & Investment (Glorei), local Al Madina Real Estate, Royal Guard Pension Fund and Public Authority for Social Insurance (Pasi) were also equity investors when the hotel was announced in 2013.
Al Madina Real Estate secured finance for the hotel from local Bank Muscats Islamic banking window Meethaq in 2013. The project was originally planned to cost RO28m and was scheduled for completion 2014.
The 56,162 square metre, five-star hotel is adjacent to the newly extended Grand Muscat Mall, also owned by Al Madina. The hotel will have 324 rooms and a 1,250 square metre ballroom. It is Omans first luxury shariah-compliant hotel.
London-based Millennium & Copthorne Hotels will operate the hotel.
Adhi Oman won the RO16.4m construction contract in 2012. The company was an Indonesian-local joint venture, but Al Madina took a majority stake weeks after it won the hotel contract.
State-owned Oman Tourism Development Company (Omran) signed a RO30.6m ($80m) financing deal for the Crowne Plaza hotel at its flagship Oman Convention and Exhibition Centre (OCEC) project in September, and is also planning to secure finance for the neighbouring JW Marriott hotel.
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