Text size:

  • Small
  • Normal
  • Large
Prince Alwaleed bin Talal bin Abdulaziz Al Saud, the chairman of Kingdom Holding.
Prince Alwaleed bin Talal bin Abdulaziz Al Saud, the chairman of Kingdom Holding.

Kingdom Holding aims to move into hotels

Kingdom Holding, the investment firm of Prince Alwaleed bin Talal bin Abdulaziz Al Saud of Saudi Arabia, wants to buy US$375 million (Dh1.37 billion) worth of shares in its hotel division.

Kingdom Holding, the investment firm of Prince Alwaleed bin Talal bin Abdulaziz Al Saud of Saudi Arabia, wants to buy US$375 million (Dh1.37 billion) worth of shares in its hotel division. The shares of Kingdom Hotel Investments (KHI) have not traded since January 11 of last year and are down 57 per cent since listing on NASDAQ Dubai in March 2006.

"The NASDAQ Dubai is not very liquid and [Kingdom Hotel's] move further points to the eventual winding down of the exchange," said Robert McKinnon, the chief investment officer at ASAS Capital. Billed as the bridge between the equity markets of Europe and East Asia when it launched as the Dubai International Finance Exchange in 2005, the bourse has struggled to attract listings or liquidity. There are 16 equity listings on the NASDAQ Dubai, only one of which, DP World, trades on a daily basis.

In January, the ports operator said it was eyeing a dual listing on the London Stock Exchange this year as it was not happy with the market price of the company. A Kingdom Holding unit would pay $5 for each KHI share in the recommended offer for a 44 per cent stake, a more than 25 per cent premium to the market price, Kingdom Holding said in a statement on the Saudi bourse website. KHI reported yesterday that its net profits rose 27 per cent last year to $21.8m compared with 2008, as the company sold four of its assets, including its interest in the Four Seasons Resort in Sharm el Sheikh.

KHI has ownership interests in 27 hotels in 18 countries, including Egypt, Lebanon and France. The sale of assets generated $87m in value and $37m gains, but the hotel industry suffered a difficult year globally. "The trading environment in 2009 remained challenging," said Sarmad Zok, the chief executive of KHI. This resulted in group revenues decreasing 12 per cent to $246.4m, the company said. "Revenue per available room declines slowed in the second half of the year as the overall portfolio proved resilient and the company benefited from the diversity of our properties by both geography and market segment."

KHI said it expected to register "mid single digit growth in revenue per available room" this year, "underpinned by good growth in Asia". Revenue per available room is the main indicator of the health of the industry. "We expect a shy and cautious recovery in a number of our markets," Mr Zok said. KHI has hotels under development in the Seychelles, Marrakech and Accra. The company said these projects were on track. KHI spent $181m last year advancing its development projects, it said.

* with agencies

Back to the top

More articles

Editor's Picks

 The Greens, villas: Q1 no change. 3BR - Dh210-250,000. 4BR - Dh210-260,000. 5BR - Dh220-300,000. Q1 2013-Q1 2014 5% rise. Pawan Singh / The National

In pictures: Where Dubai rents have risen and fallen, Q1 2014

Find out how rental prices in the prime locations in Dubai have altered during the first three months of the year and the current rates you will pay according to data provided by Asteco.

 Above, the private pool of Ocean Heights' five-bedroom penthouse flat. Courtesy Christie’s International Real Estate

In pictures: Penthouse flat is height of Dubai luxury living

A five-bedroom penthouse in Ocean Heights in Dubai Marina is on sale for Dh25 million and comes with a private pool and an unparalleled view of Dubai.

 The cooling towers of the Temelin nuclear power plant near the Tyn nad Vltavou in Czech Republic. The country wants to continue expanding nuclear energy capacity despite cancelling a tender to build two new units. David W Cerny / Reuters

In pictures: Best business images for the week to April 17, 2014

Here are some of the best business images for the week to April 17, 2014.

 Three generations of the Hakimi family tend to their stall Crawford Market in Mumbai. Subhash Sharma for The National

In pictures: Shopper’s delight at Crawford Market in Mumbai

Crawford Market is an old British-style covered market dealing in just about every kind of fresh food and domestic animal imaginable. Later on renamed Mahatma Jotirao Phule, the market remains popular among locals and visitors by its old name, taken from Arthur Crawford who was the first municipal commissioner of the city.

 The Wind, Energy, Technology and Environment Exhibition takes place from April 14 to April 16. Above, the Dewa showroom during last year’s Wetex. Jaime Puebla / The National

April corporate and economic calendar for the UAE and overseas

From Cityscape to Wetex to stock-market holidays to nations reporting first-quarter GDP figures, here is our helpful calendar of April's business events in the UAE and internationally.

 Get the latest information on credit cards, bank accounts and loan products in the UAE. Mark Lennihan / AP Photo

Rates report: Latest on UAE loans, accounts and credit cards

Souqamal.com brings you the latest interest rates on banking products in the UAE.


To add your event to The National listings, click here

Get the most from The National