Saudi Arabia investing in hotels all across Asia
The Asian investment diversification policy of Saudi-owned Kingdom Hotel Investments (KHI) has contributed substantially to the company's first-half earnings, and is expected to grow in the years ahead. Nearly all the hotel expansion undertaken by KHI, owned by Prince Alwaleed Bin Talal, in the past year has been in Asia, a region which generated 21% of the group's total consolidated hotel revenues in January-June 2007. This was up from 1% in the same period of 2006, the company reported.

Total revenues increased 74% to US$74.3 million in the first half of 2007 primarily as a result of six operating hotel acquisitions since the start of 2006, three of which were in Asia.

The company's sole Thai-owned property, the 339-room Movenpick Resort & Spa, at Karon Beach, grew its revenue per available room 99% from $41.9 in the first half of 2006 to $83.6 in the first half of 2007. Total revenues have grown from $3.99 million to $7.51 in the same period.

KHI sold 13 apartments in the property for a $1.3 million profit. The hotel was bought 100% in 2006 for $71.5 million.

Another Thai property, the $115-million 120-room and 25-villa Raffles Phang Nga Resort, in which KHI has an 80% interest, is being built.

The leveraging of recent acquisitions and refinancing of existing operations is expected to generate new debt of more than $100 million, the company said.


Bangkok Post, Thailand