Work is under way on a new five-star hotel being built at Oman's Al Ghubra area. The Chedi Muscat is being built at a cost of RO10.5 million ($27 million) by the newly floated Hotels Management Company International (HMCI).

The hotel will have 160 rooms and 40 suites. It will be managed by the General Hotel Management Company, which has its head office in the British Virgin Islands and runs six top properties in southeast Asia.

The Chedi will offer three types of rooms - the Serai, the Chedi and the Chedi Suites. The promoters expect a soft opening in November and a full opening by December.

Of the RO10.5 million cost, RO4.5 million will come from bank loans, RO3 million will be a soft loan from the government and the remaining RO3 million will be equity capital.

The seven promoters have fully paid up RO1.8 million towards the equity capital and the remaining RO 1.2 million will be issued through an initial public offering which will close on September 29.

The promoters are Al Shabha Investment Co, Capital E Financial Group, Wadi Al Numan Enterprises, Civil Services Employees Pension Fund, Royal Guard of Oman Pension Fund, Project Investment and Al-Arkan Trading (Europe).

Al Shabha Investment Company, Wadi Al Numan Enterprises and Al-Arkan Trading (Europe) have fully underwritten the issue, which is lead managed by investment banking division of the National Bank of Oman.