GIBRALTAR--(BUSINESS WIRE)--Luxury resort hospitality company The Resort Group plc (TRG) said today that ARC Ratings, S.A. (ARC Ratings) has reaffirmed its corporate ‘BBB’ - issuer medium and long-term rating with a ‘Stable’ outlook for the Group.
The rating agency said this was driven by the Group’s capacity to further develop its activities, leveraging Cape Verde as a secure, political and socially stable emerging touristic market, and its ability to generate funds with an increasing contribution from leisure and hospitality revenues.
ARC Ratings initially assigned the investment-grade credit rating to TRG in December 2016. In reaffirming the rating, the agency said TRG’s key rating drivers are its strong business model, relationships with leading international hotel brands, guaranteed occupancy agreements, modest leverage and experienced management team.
TRG’s experienced management board has designed a business model which allows the Group to reduce its risks by sharing part of its potential profitability with its partners, including accommodation unit investors, construction contractors, Hotels and Resort operators and international tour operators.
The company attracts strong international hotel brand operators to its hotels and resorts, including Meliá, Sensimar (TUI Group), Hilton Worldwide and Steigenberger brands. The strength of these relationships is evident in the minimum occupancy agreements TRG has secured with TUI Group for at least the first three years of operation, with a potential two-year extension.
Rob Jarrett, CEO and founder of The Resort Group, said: “We welcome the reaffirmation of these investment-grade credit ratings. They are testament to the strength of our business model and our relationships with the world’s leading international hotel brands and tour operators. We have the largest resort and hotel pipeline in Cape Verde, an increasingly important and popular tourist destination. The islands saw a 13% increase in visitors in 2016 and we expect our resorts to benefit strongly from the expected growth through 2017 and beyond.”
- Ends -
About The Resort Group
The Resort Group plc (TRG) is a world-class luxury resort hospitality company specialising in creating five-star holiday resorts and hotels. The Group has strategic partnerships with leading hotel and tour operators, which include TUI Travel, Meliá Hotels International, Steigenberger Hotels and Resorts and Hilton Worldwide.
TRG has the largest resort and hotel pipeline in the rapidly growing tourist destination of Cape Verde, with two award-winning beach resorts open at MELIÃ Tortuga and MELIÃ Dunas. In December 2016, TRG opened two new hotels, TUI Sensimar Cabo Verde and MELIÃ Llana Beach Hotel and the new exclusive Bikini Beach Club. There are a further 10 projects in the pipeline.
For more information about The Resort Group https://www.theresortgroupplc.com
About ARC Ratings
ARC Ratings, S.A. is an international credit rating agency based in Europe and registered with the European Securities and Markets Authority (ESMA). Gathering the know-how and background of five experienced partner agencies on four continents, ARC Ratings takes advantage of its global reach, local expertise and network-based approach to best serve issuers and investors by assigning stable credit ratings that optimally identify credit risk.