Saturday 23 June 2018

Kingdom sells key hotel stakes for $93m

Jeddah, January 14, 2012

Kingdom Holding Company (KHC), the investment firm chaired by Saudi Prince Alwaleed Bin Talal Bin Abdulaziz Alsaud, said it has sold its hotel stakes in Indonesia and Tanzania for $93 million.

The transaction for the sale of stake in Four Seasons Hotel Jakarta (Indonesia) and Mövenpick Dar es Salaam (Tanzania) was done through its unit Kingdom Hotel Investments (KHI) during the fourth quarter of 2011, said a company statement.

KHI had held 82 per cent ownership in the Four Seasons Hotel Jakarta and 96 per cent in the Mövenpick Royal Palm Dar es Salaam, it stated.

Commenting on the sale, Prince Alwaleed said, “These transactions mark yet another step for KHI towards the realization of the value of its investments.”

Sarmad Zok, chairman and CEO of KHI said, “We are delighted to realize value from our investments. This is a measure of performance and the ultimate reward to our shareholders.'

'Whereas M&A transaction volumes have been thin globally, KHI’s active monetization program is a testimony to the quality of its assets and team execution. We look forward to continuing an orderly value realization strategy into 2012,' he added.

According to Alwaleed, KHI has ownership interests in 22 properties across 15 countries, including 20 operating hotels and resorts.

His investment in Indonesia through KHC in the financial sector is via Citigroup.

The strategic investments in hotels through Kingdom Holding include Four Seasons Resort Bali at Sayan, Four Seasons Resort Bali at Jimbaran Bay, Raffles Hotel Bali at Jimbaran and Raffles Jakarta that is under development.

KHC holds a 47.5 per cent stake in the Four Seasons which is co-owned by Bill Gates’ Cascade with a 47.5 per cent stake, and 5 per cent is owned by Isadore Sharp.

Prince Alwaleed’s investments through KHC in Tanzania include the current holding of Mövenpick Hotels and Resorts.

Besides KHC has ownership interest in seven Mövenpick operating hotels through KHI including El Gouna; Bur Dubai & Residences, Dubai, Mövenpick Mauritius, South West Coast, Mauritius, Karon Beach Resort, Phuket (Thailand), Mövenpick Beirut and El Qusair, Red Sea Coast (Egypt), and Mövenpick Ramallah Hotel in Palestine. KHC owns a 33.3 per cent stake in Mövenpick Hotels and Resorts.-TradeArabia News Service

Tags: hotels | Indonesia | Stake | Alwaleed | Kingdom Holding Company | Tanzania | saudi prince |

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