Prince Alwaleed: "Our investments in Africa are on the rise and we are committed in investing in this promising continent"
$60 million required to acquire and renovate five existing assets; the Norfolk in Nairobi, Mount Kenya Safari Club, Mara Safari Club, The Ark and Aberdare Country Club
Riyadh based Kingdom Hotel Investment ("KHI"), Chaired by HRH Prince Alwaleed bin Talal bin Abdulaziz Alsaud, announced the acquisition of the Lonrho Hotels Kenya portfolio from Lonrho Africa Plc.
In close collaboration with IFA of Kuwait, as well as Fairmont Hotels & Resorts, KHI has acquired 100% of the Lonrho Hotels portfolio in Kenya. The portfolio, which consists of five properties totaling over 400 rooms, includes the historic Norfolk Hotel in Nairobi and the famous destination resort of the Mount Kenya Safari Club. The remaining three hotels are located in important and very popular tourist destinations, such as the Masai Mara. Fairmont Hotels & Resorts will be managing the portfolio in its entirety and will oversee an ambitious renovation program that will create the finest internationally branded hotels and resorts across the Eastern African continent.
This corporate hotel acquisition represents one of the largest ever conducted in East Africa during recent years. HRH Prince Alwaleed, Chairman of KHI commented "Tourism to Africa is undoubtedly on a strong rebound and we have been monitoring strategic investment opportunities in this particular region for quite some time. We hope to positively contribute to the recent uplift in tourism arrivals by bringing new high quality hotels to the market." He continued, "Our careful analysis reveals that East Africa is already experiencing a very strong rebound in demand from North American as well as European source markets. Kenya, with its wealth of natural touristic resources, is well positioned to derive significant benefit from this trend, and we are pleased to play our role in its future prosperity. Our investments in Africa are on the rise and we are committed in investing in this promising continent."
Mr. Jassim Al Bahar, Chairman of IFA, commented "This transaction further cements our relationship with KHI, and is a continuation of our strategic alliance to develop hotels across the region. We are also very pleased to have extended our already existing portfolio in Africa and in particular South Africa and have great confidence in the outlook of Kenya's tourism industry. We are committed to create one of the region's most dynamic and high-end tourism circuits throughout this country's celebrated wildlife area."
Mr. Sarmad Zok, Chief Executive Officer of KHI added, "Following the recent acquisition of the Royal Palm Hotel in Dar es-Salam, earlier this year, we are particularly pleased to have successfully acquired this well known portfolio of assets, with significant upside potential." He continued "This acquisition represents a unique opportunity to reposition this historic portfolio through a re-branding and renovation exercise. A $ 25 million renovation program will be initiated in order to upgrade the hotels to Fairmont's standards and allow the hotels to regain their formed clients, glory and prominence within the international hotel arena." He added "A turnaround plan of this nature perfectly fits with KHI' hotel investing strategy which consists in targeting underperforming assets with significant upside potential that can be unlocked through active asset management."
"Fairmont is pleased to continue our successful partnership with both Kingdom and IFA, which have been key to our brand's growing presence in Europe and the Middle East," noted William R. Fatt, Fairmont's Chief Executive Officer. "Fairmont's reputation for luxury, our global distribution network and expertise in enhancing landmark assets will be instrumental in maximizing the performance of these unique hotels."
Lonrho Hotels Kenya will be re-branded to Fairmont Hotels & Resorts, in mid-2006 during the renovation and repositioning of the following properties:
Hotel |
Hotel Type | Year Opened | Rooms |
Norfolk | City Centre - Nairobi | 1904 | 167 |
Mt. Kenya Safari Club | Destination Resort | 1959 | 114 |
Mara Safari Club | Game Lodge | 1989 | 50 |
The Ark | Game Lodge | 1972 | 60 |
Aberdare Country Club | Destination Resort | 1968 | 48 |
-Ends-
Kingdom Hotel Investments' Details
Currently, Kingdom Hotel Investments (KHI) owns 14 properties across the Middle East and Africa. Through local partnerships, KHI controls over $2 billion of real estate in the region. Its assets are either operational such as the Four Seasons Cairo, Four Seasons Sharm El Sheikh, Four Seasons Amman, M?venpick Beirut, M?venpick Bur Dubai, M?venpick El Gouna, and M?venpick Dar es-Salam, or under completion or scheduled to open during the next 24 months such as the Fairmont Hotel Cairo, the Fairmont Palm Hotel & Resort, the Four Seasons Damascus and M?venpick Pearl Dubai.
KHI is the region's largest Hospitality Investment Private Equity Company sponsored by HRH Prince Alwaleed bin Talal bin Abdulaziz Al Saud.
KHI employs a strong team of 30 professionals and carries out Construction, Acquisition, Finance and Asset Management functions across all areas of the Hotel Industry.
IFA Hotels & Resorts' Details
IFA Hotels & Resorts is a subsidiary of the Kuwait-based International Financial Advisors Company (IFA). The depth and strength of the group places it in the forefront of companies engaged in the development of tourism projects, hotels and resorts in Europe, the Middle East and Africa. It is the force behind the management of the super-premium Sheraton Algarve Hotel and Pine Cliffs Resort in Portugal, part of Starwood's Luxury Collection and is the largest investor on the Palm Jumeirah island development in Dubai. IFA also has extensive investments in South Africa, Zanzibar, and Lebanon.
Fairmont Hotels and Resorts' Details
Fairmont Hotels and Resorts (FHR) is a leading owner/operator of luxury hotels and resorts. FHR's managed portfolio consists of 82 luxury and first-class properties with more than 32,000 guestrooms in the United States, Canada, Mexico, Bermuda, Barbados, United Kingdom, Monaco and the United Arab Emirates. FHR owns Fairmont Hotels Inc., North America's largest luxury hotel management company, as measured by rooms under management, with 45 distinctive city center and resort hotels such as The Fairmont San Francisco, The Fairmont Banff Springs and The Savoy, A Fairmont Hotel. Future Fairmont Hotels & Resorts include The Fairmont Mayakoba, Riviera Maya (fall 2005), The Fairmont Cairo and The Fairmont Abu Dhabi Resort & Villas.
FHR also owns Delta Hotels, Canada's largest first-class hotel management company, which manages and franchises 37 city center and resort properties in Canada. In addition to hotel management, FHR holds real estate interests in 23 properties and an approximate 24% investment interest in Legacy Hotels Real Estate Investment Trust, which owns 24 properties. FHR owns FHP Management Company LLC, a private residence club management company that operates Fairmont Heritage Place.
For further information please contact:
Sarmad Zok
Chief Executive Officer
Tel: +966 1 211 0011
Fax: +966 1 211 2200
ed@kingdomhotels.com
www.kingdomhotels.com
For further information, contact:
Kingdom Hotel Investments
+966-1-211-0011
© Press Release 2005
