Fairmont Raffles Nets $1.33bn From Legacy Sale

Fairmont Raffles Hotels International (FRHI), leading group with 88 hotels worldwide under the Raffles, Fairmont and Swissotel brands, on Monday announced the sale of Legacy Hotels Real Estate Investment Trust (REIT) for SR5 billion ($1.33 billion).

Kingdom Holding Company (KHC), which holds a 58.1 per cent controlling interest in FRHI, netted SR740 million ($197 million) from the sales proceeds. The KHC is chaired by Prince Alwaleed bin Talal bin Abdulaziz Alsaud.

The FRHI also owns Fairmont and Raffles branded Residences, Estates and luxury private residence club properties.

Legacy REIT is the largest Canadian lodging real estate investment trust with focus on the ownership of luxury and first-class hotels.

PJ Shoucair, executive director for International Investments at KHC said the sale was in line with Fairmont Raffles Hotels International’s strategy of disposing of non-core assets.

‘Last year, Kingdom Holding sold Swissotel Sydney in Australia for SR281 million besides re-financing of the Four Seasons George V hotel in Paris with net cash proceeds valued at SR285 million going to KHC, the re-financing of the Hotel des Bergues, Geneva in the amount of SR375 million and announced the sale of the Four Seasons Hotel, London for SR550 million,’ he added.

This year KHC announced the completion of the sale of the Monte Carlo Grand Hotel in Monaco with proceeds valued at SR150 million going to KHC, Raffles Grand D’ Angkor & Le Royal, Cambodia for a sale value of SR131 million and the Swissotel Merchant Court, Singapore for a sale value of SR573 million.

In 2006 Kingdom and Colony completed a $5.5 billion acquisition of Fairmont Hotels & Resorts which was combined with the Raffles Hotels Group.


Source: Trade Arabia News