Abu Dhabi fund ADQ offers to create large hospitality group

Abu Dhabi fund ADQ offers to create large hospitality group

Abu Dhabi sovereign investment fund ADQ has submitted an offer to create a company with $5.4bn in assets in a "strategic combination“ of two local hospitality groups, part of an effort to form a larger entity that will support the emirate's long-term diversification plans. ADQ has proposed combining Abu Dhabi National Hotels Company with one of its portfolio companies, Abu Dhabi National Exhibitions Company, according to a statement on Wednesday. ADNH shares jumped as much as 15 per cent on Wednesday, the maximum allowed by the local exchange, and headed for the highest closing price since 2010. The proposed transaction "would create one of the largest hospitality, events, and catering powerhouses in the region“ and would help attract more tourism and business travel to the emirate, ADQ said.