KHI buys two hotels in Cambodia for $35m

17 July 2007

Dubai: Dubai-headquartered Kingdom Hotel Investments (KHI), majority owned by Saudi billionaire Prince Al Waleed Bin Talal, yesterday said it has bought two hotels for $35 million in Cambodia as part of its push into Asia's growing hospitality market.

The acquisition of the Raffles Grand Hotel d'Angkor in Siem Reap and the Raffles Hotel Le Royal in Phnom Penh will add 295 rooms to KHI's existing inventory of more than 4,500 rooms in 20 operating hotels.

"These acquisitions are KHI's first in Cambodia and reflect the group's investment and diversification strategy in high growth emerging markets," a company statement said.

Both hotels will continue to be managed by Raffles Hotels & Resorts, one of the four major hotel chains in which the prince owns a stake.

KHI has 14 hotels under development in 13 countries that will create about 3,750 rooms upon completion.

It now has eight properties in six Asian countries, including Thailand and Malaysia.

The group has a target of adding a minimum of six hotels to its portfolio every year and expects to deploy most of its new capital in the fast-growing econ-omies of Asia.

KHI bought 11 hotels in 2006 and hopes to beat that number this year.

Sarmad Zok, chief executive officer of KHI, said early this year the company was looking to have hotels in Malaysia, the Philippines, Vietnam, Cambodia, Pakistan and China.

Kingdom Hotel Investments said in March that it had acquired land on Makati Avenue in Manila for the development of two hotels and residences.

The $152-million project will comprise a 300-room Fairmont Hotel, a 30-suite Raffles hotel and 189 Raffles-branded private residences.

In another major transaction, the company acquired the Four Seasons Hotel on the Malaysian island of Langkawi for $114.2 million.