RIYADH, 14 May 2005 — The Riyadh-based Kingdom Hotel Investment (KHI) has announced the acquisition of Lonrho Hotels Kenya portfolio from Lonrho Africa PLC in close collaboration with IFA of Kuwait and Fairmont Hotels & Resorts.
KHI and IFA forked over $60 million to acquire and renovate five existing assets with over 400 rooms. “Tourism to Africa is undoubtedly on a strong rebound and we have been monitoring strategic investment opportunities in this region for quite some time. We hope to positively contribute to the recent uplift in tourism arrivals by bringing new high quality to the market,” said Prince Alwaleed ibn Talal, KHI chairman said.
The portfolio 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 popular tourist destinations such as the Massai 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 African continent. This hotel acquisition represents one of the largest ever conducted in East Africa in recent years.
“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 prosperity. Our investments in Africa are on the rise and we are committed in investing in this promising continent,” Prince Alwaleed said.
Jassim Al-Bahar, IFA chairman, said,” 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 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.”
William R. Fatt, Fairmont’s CEO, added,” 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. Fairmont’s reputation for luxury, global distribution network and expertise in enhancing landmark assets will be instrumental in maximizing the performance of these unique hotels.”
