CAIRO, Oct 16 – Egyptian hospitality group Pickalbatros Hotels & Resorts has secured $250 million in sustainability-linked financing from the International Finance Corporation (IFC) and Attijariwafa Bank to finance hotel acquisitions, property upgrades and expansion in Morocco.
The transaction, announced by investment bank Zilla Capital, which advised Pickalbatros, is described as the largest IFC-backed hospitality financing deal in Morocco’s history and the largest financing package secured by the Egyptian hotel group.
The agreement brings together the World Bank Group’s private-sector investment arm and Morocco’s largest bank to support Pickalbatros’ expansion in the country’s tourism industry.
According to IFC’s project disclosure, the financing comprises a loan of up to $165 million from IFC and $135 million mobilised from other lenders. The total project cost is estimated at $386 million, with the remaining $86 million expected to be funded through Pickalbatros’ equity.
The financing will support the acquisition of three hotel assets, refurbishment and upgrades across newly acquired and existing properties, and the refinancing of existing debt at longer maturities.
Hotel Acquisitions and Upgrades Expand Moroccan Portfolio
Pickalbatros has recently acquired Sofitel Casablanca Tour Blanche and Mövenpick Hotel Casablanca as part of its expansion in Morocco.
The group also plans to upgrade properties in Marrakech and Agadir, including investments aimed at improving operational performance and environmental efficiency.
Pickalbatros now operates more than 2,700 rooms across nine hotels in Morocco, strengthening its position in a tourism market that attracts international visitors and supports employment across accommodation, transport, food services and related industries.
The latest financing is intended to provide capital for further portfolio expansion while improving the quality and efficiency of the group’s existing assets.
Refinancing existing debt over longer maturities could also give the group greater flexibility in managing its financing obligations while funding its investment programme.
Sustainability Targets Linked to Financing
The financing includes sustainability-linked features tied to environmental performance, with planned refurbishment work expected to improve energy and water efficiency across Pickalbatros’ Moroccan properties.
IFC will support the group in developing a sustainability framework and pursuing EDGE green building certification for key assets. EDGE, which stands for Excellence in Design for Greater Efficiencies, is a green building certification system focused on resource efficiency.
The institution will also provide advisory support to strengthen the group’s environmental, social and governance practices and establish a dedicated holding structure for its Moroccan operations.
Linking financing to sustainability objectives can encourage companies to incorporate measurable environmental performance improvements into their investment and operating plans. However, the effectiveness of such arrangements depends on the specific targets, measurement criteria and verification mechanisms attached to the financing.
The disclosed information does not specify the individual sustainability targets or the financial consequences associated with meeting or missing them.
IFC and Attijariwafa Bank Support Tourism Investment
The transaction highlights cooperation between an international development finance institution and a major regional bank in financing hospitality investment.
For IFC, the project provides an opportunity to support private-sector investment while promoting resource efficiency and improvements in environmental and social practices.
For Attijariwafa Bank, participation in the financing supports a major hospitality group’s expansion in Morocco, where tourism-related investment generates demand for accommodation, infrastructure, suppliers and other services.
The project is also expected to contribute to job creation, domestic procurement and wider economic activity associated with Morocco’s tourism industry. The announcement did not provide specific employment targets or quantify the expected local purchasing impact.
Zilla Capital Advises on Financing Structure
Zilla Capital said it advised Pickalbatros throughout the transaction, covering financing strategy, structuring, lender negotiations and the signing of financing documents.
The advisory team was co-led by the firm’s founders and co-chief executive officers, Moustafa El-Shenety and Khaled Gamal, alongside Managing Director Omar Zakaria, Director Abdelfatah Abomousa and Analyst Menna Sameh.
El-Shenety said the transaction reflected international and local confidence in Pickalbatros’ growth strategy and Morocco’s hospitality sector.
Gamal described the deal as a milestone in Zilla Capital’s entry into the Moroccan market. The firm plans to pursue further transactions in mergers and acquisitions, equity capital markets and debt capital markets.
For Pickalbatros, the financing provides a substantial funding package for its Moroccan expansion, combining acquisition capital, refurbishment spending and debt refinancing. Its longer-term commercial impact will depend on the performance of the enlarged hotel portfolio and the group’s ability to deliver the planned operational and sustainability improvements.
