12 August 2006
KUWAIT: Global Investment House "Global" announced yesterday the launch of Arabian Hospitality Holding Company (KSC) geared to set up GCC's first chain of branded luxury Serviced Residences to be exclusively managed by internationally-recognised and Singapore-based Fraser Serviced Residences (Fraser). Arabian Hospitality has acquired Exclusive Development Rights to develop and own serviced residences in the GCC under the Fraser brand.
"Booming GCC economies, excellent hotel industry performance and negligible international standard non-hotel lodging options present the opportune timing for Arabian Hospitality's market entry with its planned chain of serviced apartments spanning Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and United Arab Emirates," said Ornar M El-Quqa, Executive Vice President at Global.
Arabian Hospitality, a Kuwaiti shareholding company, intends to increase its paid-up capital to KD 50 million through the issuance of 490 million new shares of par value 100 fils each. The Company, incorporated in February 2005, intends to list on the Kuwait Stock Exchange (KSE) after a three-year timeframe. However, investors investing through the proposed special purpose vehicle will have the opportunity to exit from their investment prior to the intended listing.
A buoyant economic environment has positively impacted most sectors of GCC economies. The hospitality industry highly correlated with GDP growth has benefited more than others have. The GCC hospitality industry, dominated by hotels, has registered tremendous performance and growth in recent years, even outperforming some of the world's more established markets. Choe Peng Sum, Fraser's Chief Operating Officer, said, "Serviced residences operated by internationally-branded dedicated operators, as an accommodation option, are hardly represented in GCC's hospitality sector which boasts of some of the most luxurious hotels in the world."
With only 5 per cent of them being branded, the small number of existing serviced apartments are mostly privately owned or operated by independent owners. "Serviced residences, fully-equipped, fully-furnished and fully-serviced apartments, offer a distinctive accommodation experience from hotel stays. The distinguishing element of serviced apartments compared to hotels lie in their unique position to provide extended-stay travellers and their families with the convenience of setting up a home in a foreign country," added Sum.
Fraser will not only manage Arabian Hospitality's serviced apartment properties, but will also market them worldwide through its extensive reservation and referral networks. Fraser will also provide technical services during the development phase of each property. The company has a significant presence in Europe and Asia with properties in Bangkok, Glasgow, London, Manila, Paris, Seoul, Shenzhen, Singapore and Phetchaburi, Thailand and new developments in Shanghai and Sydney.
Fraser has won several awards for its expertise in the areas of serviced apartment management, marketing, branding and people management, and counts Fortune 500 and Forbes organisations among more than 80 per cent of its customers. The company's commitment to meet the unique needs of every single guest, its expertise in management, strength in marketing and branding and excellent people management skills have consistently translated into excellent operating and financial performance across The Fraser Collection of serviced residences in Asia and Europe.
Arabian Hospitality has also entered into an arrangement with UAE-based RSP Group, one of the region's leading real estate and hospitality advisory firms. RSP Group acts as the company's Hospitality Advisor and will assist with the acquisition and development of properties in the GCC. "In the first five years, Arabian Hospitality plans to set up seven to ten serviced apartment properties (5-star hotel equivalent quality under the Fraser brand in the GCC," added El-Quqa.
Arabian Hospitality's revenues are estimated to grow from KD 2.39 million in year two to KD 23.85 million in year ten and it is estimated to enjoy a healthy operating margin of 55 per cent Based on conservative assumptions, the internal rate of return (IRR) to investors is estimated to be 15.6 per cent.
KUWAIT: Global Investment House "Global" announced yesterday the launch of Arabian Hospitality Holding Company (KSC) geared to set up GCC's first chain of branded luxury Serviced Residences to be exclusively managed by internationally-recognised and Singapore-based Fraser Serviced Residences (Fraser). Arabian Hospitality has acquired Exclusive Development Rights to develop and own serviced residences in the GCC under the Fraser brand.
"Booming GCC economies, excellent hotel industry performance and negligible international standard non-hotel lodging options present the opportune timing for Arabian Hospitality's market entry with its planned chain of serviced apartments spanning Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and United Arab Emirates," said Ornar M El-Quqa, Executive Vice President at Global.
Arabian Hospitality, a Kuwaiti shareholding company, intends to increase its paid-up capital to KD 50 million through the issuance of 490 million new shares of par value 100 fils each. The Company, incorporated in February 2005, intends to list on the Kuwait Stock Exchange (KSE) after a three-year timeframe. However, investors investing through the proposed special purpose vehicle will have the opportunity to exit from their investment prior to the intended listing.
A buoyant economic environment has positively impacted most sectors of GCC economies. The hospitality industry highly correlated with GDP growth has benefited more than others have. The GCC hospitality industry, dominated by hotels, has registered tremendous performance and growth in recent years, even outperforming some of the world's more established markets. Choe Peng Sum, Fraser's Chief Operating Officer, said, "Serviced residences operated by internationally-branded dedicated operators, as an accommodation option, are hardly represented in GCC's hospitality sector which boasts of some of the most luxurious hotels in the world."
With only 5 per cent of them being branded, the small number of existing serviced apartments are mostly privately owned or operated by independent owners. "Serviced residences, fully-equipped, fully-furnished and fully-serviced apartments, offer a distinctive accommodation experience from hotel stays. The distinguishing element of serviced apartments compared to hotels lie in their unique position to provide extended-stay travellers and their families with the convenience of setting up a home in a foreign country," added Sum.
Fraser will not only manage Arabian Hospitality's serviced apartment properties, but will also market them worldwide through its extensive reservation and referral networks. Fraser will also provide technical services during the development phase of each property. The company has a significant presence in Europe and Asia with properties in Bangkok, Glasgow, London, Manila, Paris, Seoul, Shenzhen, Singapore and Phetchaburi, Thailand and new developments in Shanghai and Sydney.
Fraser has won several awards for its expertise in the areas of serviced apartment management, marketing, branding and people management, and counts Fortune 500 and Forbes organisations among more than 80 per cent of its customers. The company's commitment to meet the unique needs of every single guest, its expertise in management, strength in marketing and branding and excellent people management skills have consistently translated into excellent operating and financial performance across The Fraser Collection of serviced residences in Asia and Europe.
Arabian Hospitality has also entered into an arrangement with UAE-based RSP Group, one of the region's leading real estate and hospitality advisory firms. RSP Group acts as the company's Hospitality Advisor and will assist with the acquisition and development of properties in the GCC. "In the first five years, Arabian Hospitality plans to set up seven to ten serviced apartment properties (5-star hotel equivalent quality under the Fraser brand in the GCC," added El-Quqa.
Arabian Hospitality's revenues are estimated to grow from KD 2.39 million in year two to KD 23.85 million in year ten and it is estimated to enjoy a healthy operating margin of 55 per cent Based on conservative assumptions, the internal rate of return (IRR) to investors is estimated to be 15.6 per cent.
© Kuwait Times 2006
