NEW SPEAKER FOR 2014: Kabir Mulchandani, Group CEO of SKAI Holdings
The owner of Viceroy Dubai Palm Jumeirah, Kabir Mulchandani will be speaking on a panel entitled ‘Getting the mix right to make money’.

“The Middle East and Africa is one of the fastest growing markets for the hospitality industry in the world. There are currently 504 hotels — or 122,631 rooms — in the development pipeline, according to data from STR Global.

The success and the future of these hotels will rely heavily on how they are funded. In days gone by, building a hotel would be a costly and lengthy process, during which a building’s owner would not typically expect to break even for over a decade. Today with the huge development pipeline, developers have to look at alternative ways to fund their growth.

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I will be speaking on a panel discussion about project financing, based on my own personal experience of raising major project investment from China.

SKAI Holdings is currently developing the Viceroy Dubai Palm Jumeirah, which has been funded through a mix of different entities, including traditional finance from the Industrial and Commercial Bank of China (ICBC), a special purpose vehicle, and a unique investor model that allows individual investors to purchase and lease back hotel rooms.

One of the most significant areas of focus looking ahead is from China. SKAI Holdings’ partnership with China State Construction Engineering Corporation (Middle East LLC), the main contractor of the Viceroy Dubai Palm Jumeirah, to form a special purpose vehicle ASSAS, together with US $201mn of financing from ICBC are examples of how we have leveraged the growing interest from China in this part of the world.

Our unique investor model, which allows buyers to purchase hotel rooms, which are then leased back in exchange for 40% of the room revenue, is also a growing area of interest for the industry. This model is one I expect an increasing number of developers to adopt as they look to grow their presence in the region.”

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