A $250 million financing agreement involving IFC and Attijariwafa Bank
Announced in Marrakech on 15 October 2026, the transaction provides $250 million in financing, equivalent to approximately €215 million for indicative purposes, to support the investment strategy of Pickalbatros Hotels & Resorts in Morocco.
The financing brings together two institutions with complementary profiles: IFC (International Finance Corporation), the World Bank Group’s private sector financing institution, and Attijariwafa Bank, a Moroccan banking group.
According to Zilla Capital, exclusive financial adviser to Pickalbatros, this represents the largest IFC-backed hotel financing ever arranged in Morocco, as well as the largest financing secured by Pickalbatros to date.
The transaction involves a credit facility structured into several components rather than an equity capital increase.
It is intended to enable the group to finance acquisitions, property investments and the restructuring of part of its existing debt simultaneously.
The respective commitments of IFC and Attijariwafa Bank, interest rates and contractual maturities have not been disclosed.
Casablanca: financing the Sofitel and Mövenpick acquisitions
Part of the financing will support the recent acquisitions of two hotels in Casablanca: Sofitel Casablanca Tour Blanche and Mövenpick Hotel Casablanca.
These transactions enable Pickalbatros to strengthen its presence in Morocco’s economic capital and broaden its portfolio beyond destinations primarily associated with leisure tourism.
Casablanca has a hotel demand profile distinct from that of Marrakech or Agadir, with substantial demand generated by business travel, corporate activity and events.
Integrating these assets therefore provides an opportunity for geographical and commercial diversification.
However, the announcement does not specify the respective acquisition prices or the future operating arrangements for the two properties.
Nor does it establish whether the Sofitel and Mövenpick brands will be retained over the long term.
Marrakech and Agadir: refurbishment and environmental improvements
The financing will also support a modernisation programme covering hotels owned or operated by Pickalbatros in Marrakech and Agadir.
The planned investments include refurbishment and improvements to the properties’ environmental performance.
This component is particularly significant in a transaction involving a development finance institution.
Modernisation projects may include improvements to energy efficiency, water consumption or technical equipment, although the specific measures planned by Pickalbatros have not been detailed in the announcement.
In destinations where hotel resorts can consume substantial resources, such investments could help reduce operating costs.
Their financial impact will nevertheless depend on the budgets committed, the savings actually achieved and any disruption to operations caused by the works.
A dual-currency credit facility structured into three tranches
The financial structure is one of the transaction’s distinguishing features.
Zilla Capital arranged a dual-currency financing facility divided into three dedicated tranches, designed to address three categories of requirements: acquisitions, capital investment and refinancing.
This structure brings different transactions together under a single financing arrangement while tailoring the resources available to the needs of the relevant assets.
Refinancing existing debt over longer maturities represents another component of the agreement.
For Pickalbatros, extending repayment schedules may improve visibility over debt servicing and ease short-term repayment pressures.
However, longer maturities do not, in themselves, imply a reduction in the overall cost of financing.
The sustainability-linked nature of the facility also implies a connection between its financial terms and sustainability objectives.
The environmental performance indicators, their thresholds and any mechanisms for adjusting lenders’ remuneration have not been disclosed.
It is therefore important to distinguish the announcement of financing linked to sustainability objectives from evidence of environmental results already achieved.
Pickalbatros: a Moroccan portfolio of more than 2,700 rooms
Pickalbatros Hotels & Resorts is a privately owned hospitality group operating in Egypt and Morocco.
Following its recent acquisitions and investments, its Moroccan portfolio now comprises more than 2,700 rooms across nine hotels, according to figures released in connection with the transaction.
This scale gives the group significant investment and operating capacity in the Moroccan market.
Its strategy combines several growth drivers: acquisitions of existing hotels, improvements to the hospitality product and optimisation of its financial structure.
The $250 million transaction should therefore be assessed at portfolio level rather than as financing for an individual new hotel.
It supports assets with different profiles, ranging from urban hospitality in Casablanca to hotels located in the tourist destinations of Marrakech and Agadir.
Zilla Capital strengthens its presence in the Moroccan market
Zilla Capital acted as exclusive financial adviser to Pickalbatros Hotels & Resorts.
The investment bank, active across the Middle East and North Africa, states that it managed the entire process: defining the financing strategy, structuring the different tranches, coordinating with lenders and negotiating the documentation through to signing.
The transaction was co-led by its two founders and co-CEOs, Moustafa El-Shenety and Khaled Gamal, alongside Omar Zakaria, Managing Director, Abdelfatah Abomousa, Director, and Menna Sameh, Analyst.
For Zilla Capital, the transaction also marks the official launch of its activities in Morocco.
The firm intends to develop its presence in mergers and acquisitions, equity capital markets and debt financing.
On the legal side, ADNA advised Pickalbatros Hotels & Resorts, while Clifford Chance acted for IFC and Attijariwafa Bank.
LTH Analysis | Portfolio financing supporting a consolidation strategy
The significance of this transaction lies in its combination of three financial objectives: funding acquisitions, committing repositioning CAPEX and extending the maturity of existing debt. This approach enables Pickalbatros to organise its development in Morocco at portfolio level rather than arranging separate financing for each property. The joint involvement of IFC and Attijariwafa Bank also combines international and local financing resources, with an environmental dimension embedded in the credit structure. For lenders and the operator alike, value creation will depend on the performance of the acquired Casablanca assets, the returns generated by refurbishments in Marrakech and Agadir, and the management of consolidated debt. Over the longer term, the transaction could provide a financing model for other hotel consolidation strategies in Morocco, subject to capital availability and project profitability.
At a Glance
Borrower: Pickalbatros Hotels & Resorts, a privately held hospitality group operating in Egypt and Morocco.
Financing: USD 250 million sustainability-linked facility.
Lenders: IFC, a member of the World Bank Group, and Attijariwafa Bank.
Structure: Dual-currency financing arranged across three dedicated tranches.
Uses of proceeds: Recent hotel acquisitions, refurbishment and environmental upgrades, and refinancing of existing debt over longer maturities.
Casablanca acquisitions: Sofitel Casablanca Tour Blanche and Mövenpick Hotel Casablanca.
Other investment destinations: Marrakech and Agadir.
Moroccan portfolio: More than 2,700 rooms across nine hotels.
Financial adviser: Zilla Capital, acting exclusively for Pickalbatros.
Legal advisers: ADNA for Pickalbatros; Clifford Chance for IFC and Attijariwafa Bank.
Disclosure: Pricing, lender allocations, maturities and sustainability performance targets have not been specified.
