Pickalbatros Hotels & Resorts, an Egyptian hospitality group, has secured a €215 million ($250 million) debt facility from the International Finance Corporation (IFC) and Morocco’s Attijariwafa Bank to expand its hotel portfolio, upgrade resorts and refinance existing debt.

The dual-currency, sustainability-linked financing, structured across three tranches, represents the group’s largest financing deal to date and will support its expansion across Morocco’s key hospitality markets, including Casablanca, Marrakech and Agadir.

Zilla Capital acted as exclusive financial adviser to Pickalbatros, while ADNA provided legal counsel to the borrower and Clifford Chance advised the lenders.

Casablanca acquisitions anchor expansion strategy

A significant portion of the financing will support the acquisition of prime urban hospitality assets, including Sofitel Casablanca Tour Blanche and Mövenpick Hotel Casablanca.

The acquisitions would strengthen Pickalbatros’ presence in Casablanca, Morocco’s commercial hub, as the Egyptian operator expands beyond its established resort business into urban hospitality.

The facility will also finance refurbishment projects across existing coastal and leisure properties in Marrakech and Agadir, including energy-efficiency improvements, environmental upgrades and structural renovations.

These investments are intended to improve the quality and sustainability of the group’s hotel portfolio while strengthening its competitiveness in Morocco’s tourism market.

Debt refinancing supports balance-sheet strategy

Beyond acquisitions and renovations, the financing will support debt restructuring aimed at optimising Pickalbatros’ capital structure and improving its long-term financial position.

The sustainability-linked structure also ties the financing to environmental and operational improvement objectives, aligning the investment with efforts to promote more sustainable hospitality infrastructure.

Pickalbatros currently operates more than 2,700 rooms across nine properties in Morocco, providing an established platform for its planned expansion.

The latest financing marks a significant step in the group’s strategy to expand its North African footprint while upgrading existing assets and pursuing opportunities in major tourism and business destinations.

The participation of IFC, a member of the World Bank Group, alongside Attijariwafa Bank, also brings international development financing and Moroccan banking support to the expansion programme.

Pickalbatros expands regional hotel portfolio

Founded in 1992 by Egyptian businessman Kamel Abu Ali, Pickalbatros operates one of the largest privately owned hotel portfolios in the region, with properties across Egypt and Morocco.

The group currently operates seven hotels in Morocco with around 1,500 rooms, reinforcing the country’s importance in its long-term expansion strategy. Its most recent addition was the Sangho Club resort in Marrakech.

With new acquisitions, resort upgrades and debt restructuring planned under the facility, Pickalbatros is positioning itself to strengthen its presence in Morocco’s hospitality sector while improving the efficiency and sustainability of its operations.