Kingdom Hotel sells hotel, eyes '08 revenue growth

DUBAI - Kingdom Hotel Investments said on Monday it had sold Monte Carlo Grand Hotel for 150 million riyals ($40 million) and expected revenue from Egypt and the United Arab Emirates to drive 2008 revenues.

By (Reuters)

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Published: Mon 21 Apr 2008, 8:39 PM

Last updated: Sun 5 Apr 2015, 11:41 AM

Kingdom Hotel, owned by Saudi billionaire Prince Alwaleed bin Talal, did not say in a statement who bought the hotel it had purchased in 2005 with Fairmont Hotels & Resorts and Bank of Scotland Corporate.

"The sale of this hotel is in line with Kingdom Hotel's strategy to continue to realise value from hotel assets," PJ Shoucair, Kingdom Hotel's executive director for international investments, said in the statement.

Kingdom Hotel said last year it planned to boost revenues by selling real estate, with projected revenues from ancillary property of $225 million and 280 million expected over the next five years.

The firm expects revenues per available (RevPar) room to rise 15 percent in 2008, driven mainly by its properties in Egypt and the UAE, Kingdom Hotel Chief Executive Sarmad Zok said on Monday.

"We expect our system portfolio to deliver 15 percent RevPar growth in 2008 and we're on track to delivering that," Zok told Reuters on the sidelines of a tourism conference in Dubai.

Morgan Stanley this month cut its price target for Kingdom Hotel shares to $8.20 from $10.60. The stock closed at $7.2 on the Dubai International Financial Exchange on Friday.



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