RIYADH: Fairmont Raffles Hotels International (FRHI) in which Kingdom Holding Company (KHC), led by Prince Alwaleed bin Talal, holds a 58.1 percent controlling interest, has sold Legacy Hotels Real Estate Investment Trust (REIT) for SR5 billion. The sale proceeds of SR740 million will go to KHC. REIT is the largest Canadian lodging real estate investment trust, focused on the ownership of luxury and first-class hotels.
P.J. Shoucair, executive director for international investments at KHC, said: “This sale is in line with FRHI’s strategy of disposing of non-core assets.”
Last year, KHC announced the sale of Swissotel Sydney in Australia for a sale value of SR281 million, 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 the sale of the Four Seasons Hotel, London for SR550 million. This year KHC announced that it had completed 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.
