RIYADH, 30 April — The newly launched Kingdom Hotel Investment Group is planning to expand its existing portfolio and position itself for a potential public offering in the next three to five years, its Chief Executive Officer Sarmad Zok said.

Saudi businessman Prince Alwaleed ibn Talal announced on Sunday the formation of the new $1 billion group to invest in hotels in the Middle East.

The new company will have a paid-up capital of $211 million and an authorized capital of $400 million. Prince Alwaleed and Muhammad ibn Eissa Al-Jaber, a well-known Saudi businessman, will jointly have a 65 percent stake in the company.

Prince Alwaleed, who owns worldwide investments worth billions of dollars, consolidated his Middle Eastern hotel assets into an independent investment vehicle, Kingdom Hotel Investment Group, Zok said.

“We are very proud to have successfully formed KHI. The company is the sole investment vehicle of its kind in the region and owns a unique collection of high quality assets that will set new standards in the region,” the prince said.

KHI currently owns 10 properties in the Middle East, and through local partners it controls real estate worth more than $1 billion, which includes completed projects and others under construction.

A number of hotels like Egypt’s Sharm El-Sheikh Four Seasons, Amman Four Seasons and Beirut Movenpick Resort, will be opened within the next two years.

“We are currently looking at a number of opportunities in the Gulf region and North Africa, and we are placing emphasis on acquiring hotels that have opened or are just about to do so,” Zok said.

Prince Alwaleed already owns 27 percent of the Swiss group Movenpick, 27 percent of the Four Seasons hotel group and 16.5 percent of the Fairmont hotel and resort chain, as well as the George V hotel in Paris.

Zok disclosed KHI’s plan to buy shares of two hotels in Egypt for $25 million to $30 million. KHI has three options for investment: Management of hotels; full ownership of hotels; and purchase shares in hotel projects and control their management.

Zok said his company was looking forward to privatization of hotels owned by the Saudi government.