Tuesday, Aug 10, 2010
LONDON (Dow Jones)--Private equity company MerchantBridge Tuesday said it has agreed to invest $20 million in Monaco Luxury Hotels & Resorts, completing its ninth transaction in five years.
The investment will be used to support a 150 million Canadian dollar (US$145 million) renovation of the Ritz Carlton Montreal hotel, which Monaco Luxury Hotels & Resorts is working on.
Middle East-focused MerchantBridge is backed by merchant families from across the Gulf Cooperation Council area.
"The luxury hospitality sector is in need for further investment. In Europe and North America, the number of new luxury hotels built decreased by more than 20% in the first half of 2010, when compared with the same period in 2008. At the same time, occupancy rates at luxury hotels in Europe and North America increased by an average of 12%," said MerchantBridge Chief Executive Basil Al-Rahim.
"We see this as an ideal opportunity for us, where we can see long-term value being created through addressing current and future supply/demand gaps," he added.
MerchantBridge's other recent deals include a joint venture with French building materials company Lafarge SA (LG.FR) in connection with a $200 million investment in Iraq's Kerbala Cement Rehabilitation Program in May.
-By Marietta Cauchi, Dow Jones Newswires; +44 207 842 9241; marietta.cauchi@dowjones.com
(END) Dow Jones Newswires
10-08-10 1547GMT
