Spain: Coordinated by BBVA and Santander, NH Hotel Group has been granted endorsement by the Official Credit Institute to help finance its operational needs throughout the current crisis.
Bankia and Bankinter also participated in the loan, which will see financing of up to $175 million and a guarantee for the remaining $50 million to be paid within the next few days.
Since the beginning of the health crisis, NH Hotel Group introduced an initial measure to draw its credit lines in March.
Several other initiatives were implemented to reduce all non-priority expenditures and investments. These included reducing marketing and external advisory expenses; temporarily adapting the size of the teams; renegotiating rentals with owners and agreements with suppliers; and temporarily halting investments in hotel repositioning.
On April 28, the company’s board of directors also resolved to withdraw the proposal to distribute a gross dividend of $0.15 per share for FY2019, which would have entailed a payout of approximately $59 million in 2020.
The syndicated loan further contemplates the possibility of a $25 million extension through the eventual incorporation of new entities.
NH Hotel Group operates over 370 hotels. Since 2019 it has been working with Minor Hotels to integrate the hotel brands under a single corporate umbrella.
This brings the total portfolio up to more than 500 hotels in over 50 countries under eight brands: NH Hotels, NH Collection, nhow, Tivoli, Anantara, Avani, Elewana and Oaks.
