Kingdom sells key stake in Manila hotel
Riyadh, October 6, 2012
Kingdom Hotel Investments (KHI), controlled by Saudi billionaire Prince Alwaleed bin Talal, said it has sold a major stake in Fairmont Hotel and Raffles Suites & Residences Makati development in the Philippines for SR218 million ($58 million).
A wholly-owned subsidiary of Saudi conglomerate Kingdom Holding Company, KHI is a leading international hotel and resort acquisition and development company focused on high growth emerging markets such as the Middle East, Asia, and Africa.
KHI signed an agreement with Ayalaland Hotels and Resorts Corporation, a wholly-owned subsidiary of Ayala Land (ALI) for the stake sale. The amount includes SR90 million in shares and SR128 million in other shareholder advances.
Announcing the stake sale, Prince Alwaleed said, "KHI will continue to be a stakeholder in the project through a financial interest with further earnout potential in the residential component and through Kingdom Holding’s ownership stake in Fairmont Raffles Hotels International.
The Fairmont Hotel and Raffles Suites & Residences Makati, a dual-luxury hotel and residential project, was developed by KHI and its joint venture partner ALI and is set to become the leading destination in Manila for business and leisure travelers as well as high-end urban dwellers.
“We continue to realize value for KHC’s shareholders,” said Alwaleed.
Sarmad Zok, the chairman and CEO of KHI and member of KHC’s board of directors, said, “We are delighted to be completing this transaction which marks another significant step in the strategy to realize value from KHI’s hotel portfolio."
This deal is the ultimate testimony to KHI’s track record of developing hotels in high growth markets and successfully executing on international transactions,” Zok noted.
“The Fairmont and Raffles Makati incorporates an innovative concept that leverages two hotels and a sizeable residential scheme into one building. This development will set new standards for the hospitality sector in Manila and become a real estate landmark in Makati’s growing skyline,” he added.
The Raffles Residences Makati is leading the high-end residential property market in Manila and has made real estate history for selling the highest priced residential condominium to date on a per square meter basis in the Philippines.-TradeArabia News Service