Vantage Capital Exits Successful Investment in Egypt’s PickAlbatros Hotels

PickAlbatros Hotels continues to play a vital role in Egypt’s tourism growth, positioning Hurghada and other Red Sea resorts as prominent destinations for European travelers.

Vantage Capital, Africa's largest mezzanine debt fund manager, has announced the full exit from its $18.4 million investment in PickAlbatros Hotels, a premier Egypt-based hotel chain. The investment, made in December 2020 during the height of the COVID-19 pandemic, helped the hotel group sustain operations and renovate newly acquired properties during a period of diminished tourist activity.

PickAlbatros Hotels, which operates 4-star and 5-star beachfront resorts across popular Red Sea destinations such as Sharm El Sheikh, Hurghada, and Marsa Allam, used the funds to address its working capital needs and refurbish key properties. Over the past three years, the group’s room capacity expanded significantly, growing from 10,000 to 14,000 rooms, marking a successful partnership.

David Kornik, Partner at Vantage Capital, highlighted that the investment exemplifies the power of mezzanine debt financing, providing essential support when banks were reluctant to lend due to pandemic-related risks. Kornik stated, "Our decision to support PickAlbatros Hotels during a tough period was validated as the hospitality sector rebounded, and the group was able to repay us in a timely manner."

Omar Gharbawi, Associate Partner at Vantage Capital, emphasized the strategic importance of Egypt’s hospitality sector, which attracts around 15 million international tourists annually and serves as a key driver of the country’s economy. He praised the leadership of PickAlbatros’ founder, Kamel Abu Ali, for bolstering tourism to Red Sea resorts and expanding the hotel’s room capacity over the last three years.

PickAlbatros Hotels continues to play a vital role in Egypt’s tourism growth, positioning Hurghada and other Red Sea resorts as prominent destinations for European travellers.